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New Member
posted Jan 30, 2025 2:23:26 PM

My Roth distribution is being taxed on my federal return prepared through Turbo Tax. Why?

0 3 2249
3 Replies
Expert Alumni
Jan 31, 2025 8:19:46 AM

It depends on a couple of things.

 

  1. If you make a Roth distribution before age 59 1/2, you may be subject to a 10% penalty unless an exception applies. Select this link for additional details.
  2. Also, if part of your distribution include earnings, the amount of your earnings are taxed but not the entire distribution.

Level 1
Feb 12, 2025 2:18:39 PM

I'm 82 and my $14,000 roth distribution in 2023 was not taxed.  It's showing up this year as the $10,000 I took for distribution is fully taxed.  What's UP?

Expert Alumni
Feb 13, 2025 10:42:57 AM

To clarify, Let us know how this reported in your return. Check your 1099R in Box 7 if the code is code Q. This tells the IRS that this is a Roth qualified distribution.  Any other distribution code could make the distribution taxable.