Program keeps saying my Roth IRA is taxable. Why?

Forum|Forum|7 years ago
June 6, 2019
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I am 71 years well past 59 1/2 and have started withdrawing funds from my Roth IRA but the TurboTax program keeps showing my withdrawals from my Roth IRA which I have had for more than 10-12 years as taxable. Why? since I am well past 59 1/2 years and have had these funds for many years, why does it still tell me they are taxable? It seems the program is geared towards those who deposit and withdraw funds early. Not the case with me. Thought that was the purpose of a Roth IRA, deposit with after tax funds and gain the investment growth upon withdrawing during retirement tax free.

TurboTax Premier Online

Best answer by

Make sure you answer all the questions pertaining to the IRA and double check your date of birth at the beginning. The most important question will be in the screen shot below.

After entering the Form 1099-R, click the Continue button on the Your 1099-R Entries. Answer Yes when asked if you opened a Roth IRA before 2013. That's all you need to do for this income to be treated as nontaxable income. The gross distribution amount will appear on Form 1040 line 15a or Form 1040A line 11a but the entire amount will be excluded from line 15b or 11b. (See the attached screenshot below. Click to enlarge.)

Anonymous

Answer

Make sure you answer all the questions pertaining to the IRA and double check your date of birth at the beginning. The most important question will be in the screen shot below.