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jzet
New Member

TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

 
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1 Best answer

Accepted Solutions

TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

After the 1099-R entries screen

Owned for 5 years?

Were and Roth IRA's Open?

Withdrew before 2016?

Enter Prior year contributions..

**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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8 Replies

TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

After the 1099-R entries screen

Owned for 5 years?

Were and Roth IRA's Open?

Withdrew before 2016?

Enter Prior year contributions..

**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.**
jzet
New Member

TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

Ah ha!  I see now what you mean my "after the 1099 entries screen".  Not sure why it doesn't just ask those questions up front
jzet
New Member

TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

Thanks!

TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

It asks for additional 1099-R's first since you might have several so the follow-up questions only come after entering them all.
**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.**
dmertz
Level 15

TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

TurboTax permitting users to jump from topic to topic makes it extremely common for people not to click the Continue button on the Your 1099-R Entries page when they need to.

TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

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.

**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.**
jzet
New Member

TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

Thank you for your feedback.  I've done everything you mentioned multiple times.  There is no follow up question at the end regarding prior year contributions though.  Any thoughts?

TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

It is in the second part after the 1099-R entries screen.
**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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