I'm trying to report my 1099-R. I made $1,650 in cash contributions to my Roth IRA in 2016. In 2017, I took a distribution of $2,250. I had contributed $600 in 2017 up to the point where I took the distribution, so I figured I was safe to withdraw a total of $2,250. After the disbursement, there was $379.24 left in the account, which was just my earnings. My 1099-R lists $2,250 in box 1, nothing in box 2a, box 2b has "taxable amount not determined" checked, nothing in box 3, $0 in box 4, nothing in boxes 5 or 6, and code J in box 7. Nothing in any of the other boxes. When I enter into Turbo Tax, I'm being charged 10%. Is that correct or am I missing something?
You can *always* withdraw your own Roth contributions tax and penalty free.
Enter a 1099-R here:
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
One of the followup questions will ask for your prior year contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.