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.
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.)
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.)
Thanks Colleen but what about the the slew of questions after this page such as “confirm net regular contributions prior to 2017 that remain in the Roth IRA account”. Is it asking for the net balance as of 12/31/31? If all I needed to do was say it was older than 5 years, why all the confusing follow up questions.
As I went through the program, these were the questions I encountered. Tell me your answers to each so I can see if I can get to the screen where those questions are asked.
Were Any Roth IRAs Open?
Withdraw from Your Roth IRA Before 2017?
Enter Prior Year Roth IRA Contributions
Any Roth IRA Conversions?
Do You Have any Excess Roth Contributions
Thanks, but when I went to the 1040 preview screen, I did see where the Roth IRA amounts where indeed excluded from the taxable amount shown in 15b as you indicated in your previous answer. The following questions did get confusing though. Very good answer service. I am impressed with your service. Will be filing shortly using TurboTax Premium.
filing for 2018 tax year. TT seems to have a bug. added to taxable income, had it since 2011, i am 64 yrs old. new tax laws so maybe TT needs to revisit. 1099R coded T. it worked last year for 2017, but not working this year. please check ASAP~