Can I take money out of my ROTH IRA and then contribute that money in the same year without paying a penalty?

[misccommo]

I thought I would be above the ROTH IRA limit.  I withdrew the contributions I had made thus far.  As it turns out, I was able to make a full contribution.  Do I need to do anything on my taxes?  My brokerage company gave me a 1099 with a J code.

[Cindy0H]

Yes, you can.

Here is how to enter it:

• Federal
• Income & Wages
• Retirement Plans & Social Security
• 1099R, Pension Plans....start or update
• Enter the 1099
• There will be numerous questions...when you see "what did you do with this money?" (see screenshot)...check I moved it...then check the correct answer

If you have other questions about this, ask in the comment section below.

[dmertz]

It's well past the 60-day deadline to roll over a distribution made in 2018 (except possibly for a distribution made in mid-December for a first-home purchase that failed to close, in which case the deadline is 120 days after the date of the distribution).

[dmertz]

It seems that you obtained a regular distribution (code J) after making a Roth IRA contribution for 2018.  A regular distribution does not undo a contribution, so, if your original contribution for 2018 was for the maximum permissible, you are not permitted to contribute any more to a Roth IRA for 2018.