Yes, you are able to take a distribution of your Roth IRA contributions tax-free. While entering your Roth IRA distribution you will see a follow up question that asks for your prior year Roth contributions previously withdrawn. You need to enter a value when that question is asked so that TurboTax can calculate the distribution correctly.
To enter your current year Roth IRA contributions follow the instructions below:
1. Log on to TurboTax and continue with your return
2. Click on the Federal Tab
3. Click on Deductions & Credits
4. Click on Start next to Traditional and Roth IRA Contributions (scroll down in the list and click the screenshot below for a visual reference.
5. Enter your 2017 Roth IRA contributions by following the TurboTax prompts.
[Edited 02.17.18 | 6:05 PM]
Does this apply to contributions I made in 2017? I made the contribution in 2017 and took it out in 2017. Will this be tax free? Or in order for it to be tax free, does the contribution have to be before 2017?
Yes. An investor can withdraw his or her contributions to a Roth IRA at any time without tax or penalty
Thank you. How would I enter that in turbo tax then? I am only seeing a section to enter contributions before 2017.
What boxes have amounts in them on your 1099-R. What is the code in box 7 of your 1099-R?
Box 1 - Gross Distribution: has $3,032.79 in it. (I contributed $3,538.25 for 2017.) Box 2b - Taxable amount not determined: is checked. Box 7 - Distribution Code: J. All other boxes are empty. Except for 13 and 14(same as box 1).
I have updated my answer with instructions on how to enter your 2017 contributions.