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eric565
New Member

I have contributed a total of $2250 to a Roth IRA from 2016 and 2017. I withdrew $2250 in and am being taxed 10%. Can't you withdraw contributions without penalty?

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?

2 Replies
viktoriyab11
New Member

I have contributed a total of $2250 to a Roth IRA from 2016 and 2017. I withdrew $2250 in and am being taxed 10%. Can't you withdraw contributions without penalty?

Form 1099-R code J indicate Early distribution from a Roth IRA, no known exception (in most cases, under age 59 1/2). Before making any Roth IRA plan withdrawals, know the difference between “qualified” and “non-qualified” distributions. What Are Qualified Distributions? <a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p590b#en_US_2016_publink1000231061">https://www.irs.gov/publication...> A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and The payment or distribution is: Made on or after the date you reach age 59½, Made because you are disabled (defined earlier), Made to a beneficiary or to your estate after your death, or One that meets the requirements listed under a First home under Exceptions in chapter 1 (up to a $ 10,000-lifetime limit). Nonqualified distributions <a rel="nofollow" target="_blank" href="https://www.irs.gov/retirement-plans/designated-roth-accounts-distributions">https://www.irs.gov/ret...> A distribution that is not a qualified distribution will be partially included in gross income if there are earnings in the account. The distribution will be treated as coming pro-rata from earnings and contributions (basis). The 10% tax on early withdrawals may apply to the part of the distribution that is includible in gross income. How to calculate the taxable portion of the distribution<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/5336637">https://ttlc.intuit.com/replies/5336637</a> [Edited: 01/16/2018 [6:49]]
macuser_22
Level 15

I have contributed a total of $2250 to a Roth IRA from 2016 and 2017. I withdrew $2250 in and am being taxed 10%. Can't you withdraw contributions without penalty?

You can *always* withdraw your own Roth contributions tax and penalty free.


Enter a 1099-R here:

Federal Taxes,
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.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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