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royulrich
New Member

I have a Roth IRA which the application adds as taxable income when it is tax free. Unable to correct this entry. Looking for help.

 
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2 Replies

I have a Roth IRA which the application adds as taxable income when it is tax free. Unable to correct this entry. Looking for help.

Withdrawal of contributions is never taxable.

Withdrawal of conversions (amounts converted from a traditional IRA to a Roth IRA) are subject to a 10% penalty if the conversion was less than 5 years ago AND you are under age 59-1/2.

Withdrawals of earnings are subject to regular income tax if you are under age 59-1/2 or if it has been less than 5 years since you opened a Roth IRA, even if you are over age 59-1/2. 

 

Turbotax doesn't know from the 1099-R, whether any part of the distribution was earnings, conversions or contributions.  You have to provide that information.

 

With a Roth distribution, one of the codes in box 7 must be J, Q or T (in addition to a number code).  If the 1099-R does not have a J, Q or T in box 7 you may have been given an incorrect form.  If you did not enter the codes correctly, go back and edit them in the program. 

DanaB27
Expert Alumni

I have a Roth IRA which the application adds as taxable income when it is tax free. Unable to correct this entry. Looking for help.

As Opus17 mentioned you will need to provide the information about contributions and conversions in the follow-up questions:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top and type “1099-R” 
  3. Click on “Jump to 1099-R” and enter all your 1099-Rs
  4. Click "Continue" on the "Review your 1099-R info" screen after you entered all you Form 1099-R
  5. Answer "Owned Any Roth IRA for Five Years?" screen
  6. Continue through the questions and make sure you enter the net contributions prior to 2023 on the "Enter Prior Year Roth IRA Contributions" screen 
  7. Make sure you answer the questions about conversion if you made them in the past.

 

@royulrich 

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