Prior year Roth IRA Contributions amounts

Forum|Forum|6 years ago
February 24, 2020
1 reply
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I retired in 2011 and my spouse and I each have a Roth IRA. We have just started to withdraw money from the two accounts in 2019 and why does turbotax ask about RothIRA Contributions prior to 2019? Plus hey "guessed" an amount. The investment has been growing for over 8 years and their "guess" is way low. What is the tax purpose of the question? Do they really just want to know how much money is in the Roth IRA? If so, WHY?

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Best answer by KarenM90

TurboTax needs to know how much money you put into your Roth so the program can calculate any earnings that might be taxable (for early withdrawals) and what amount you have actually contributed that can be distributed tax free.

Keep in mind: to avoid early withdrawal penalties (there are a few exception to the early withdrawal penalties, such as first time home buyer and college expenses)

Withdrawals must be taken after age 59½.
Withdrawals must be taken after a five-year holding period.

KarenM90Answer

Level 11

Keep in mind: to avoid early withdrawal penalties (there are a few exception to the early withdrawal penalties, such as first time home buyer and college expenses)