Is a withdraw from a Roth IRA taxable? We withdrew $2200 which would be the principal amount we contributed after taxes. Yet seems we're paying tax on the distribution.

[aclark3272]

We received a 1099-R on this distribution, but had been advised this distribution was only a disbursement of money we put into the Roth IRA, which contributions made after taxes. Why would this be considered taxable?

[zeiguzunt]

Roth IRA's are deemed to come first from contributions, so the taxable amount should be zero in your example.  HOWEVER, Roth IRA distributions are subject to the same 10% penalty as traditional IRA's unless you meet one of the exceptions such as medical expenses, educational expenses, firt-time home buyer, etc.

[macuser_22]

Withdrawing your own previous contributions are neither taxable or subject to the 10% penalty - only if the earnings might be.

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One of the followup questions will ask for your prior year contributions not previously withdrawn.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.