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Level 3
posted Feb 9, 2023 9:18:17 PM

Roth IRa cashed out code T shows no taxable amount

Initial start up was 6.5k. Cashed out with +10k after 7 years. The 1099-R form shows no taxable amount and the 2b check box checked for 'Taxable Amount Not Determined'.

In fact the rest of the amounts are $0.00.

Distribution code T. Held Roth for 5 years now age 67.

 

Is this truly tax free? I have to get affirmation because nothing is tax free.

0 2 366
2 Replies
Level 15
Feb 10, 2023 4:21:57 AM

That's the whole point of a Roth IRA -- tax- free growth.

You should have known that going in.

 

@phyzx 

Level 3
Feb 12, 2023 7:29:18 PM

There are two requirements for a withdrawal to count as a qualified distribution:

  • Age: You may be hit with a 10% tax penalty and income taxes on any investment earnings you withdraw before age 59½. (There are some exceptions to this “early withdrawal” penalty.)
  • Time: Here’s where the “five-year rule” comes into play. Roth IRA owners must have their account for at least five years to avoid paying income tax on any withdrawn investment earnings.

This is the legal description. It is a positive one in my case.