ROTH IRA early withdraw

Forum|Forum|5 years ago
February 24, 2021
4 replies
10 views

By mistake, I opened a ROTH IRA account and made 1000 dollar contribution in 2020 and then realized the mistake and close the account. at the time of withdrawal amount is 1045.26.

I received 1099 R from a broker and it mentioned

Column 1 Gross distribution is 1045.62

Column 2 Taxable amount Blank

Column 2b Checked (Taxable amount not determined)

Column 7: Code is J (indicates that there was an early distribution from a ROTH IRA. )

Now Turbotax is adding a tax on the whole amount. please suggest me.

I have Tubo Premier desktop version 2020

and the taxable amount is blank.

macuser_22

Alumni - Champ

@gk5987 wrote:

By mistake, I opened a ROTH IRA account and made 1000 dollar contribution in 2020 and then realized the mistake and close the account. at the time of withdrawal amount is 1045.26.

I received 1099 R from a broker and it mentioned

Column 1 Gross distribution is 1045.62

Column 2 Taxable amount Blank

Column 2b Checked (Taxable amount not determined)

Column 7: Code is J (indicates that there was an early distribution from a ROTH IRA. )

Now Turbotax is adding a tax on the whole amount. please suggest me.

I have Tubo Premier desktop version 2020

and the taxable amount is blank.

You should have requested a "return of contribution" and your 1099-R would have a code 8J, but just enter the 1099-R you have. A $1,000 is your own contribution that is not taxable but the $46 is taxable and also subject to a 10% penalty ($4.60 - rounds to $5) if you are under age 59 1/2.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

gk5987Author

Level 2

I don't have I099T, What I can do now? Turbotax calculating penalty and tax,

macuser_22

Alumni - Champ

"T" was a typo.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**