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posted Jun 3, 2019 4:53:14 PM

Roth ira first time homebuyer, $10K no penalty withdrawal when used before closing

roth ira first time homebuyer, $10K no penalty withdrawal when used before closing.  do I wait for a 1099R and does the software automatically ignore the 10K?

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1 Best answer
Employee Tax Expert
Jun 3, 2019 4:53:16 PM

Do wait for the 1099-R and enter it in the program along with its Box 7 distribution codes. Then answer the follow up questions in the 1099-R section. 

See TurboTaxDeeS's answer for reference.

https://ttlc.intuit.com/replies/6506429

2 Replies
Employee Tax Expert
Jun 3, 2019 4:53:16 PM

Do wait for the 1099-R and enter it in the program along with its Box 7 distribution codes. Then answer the follow up questions in the 1099-R section. 

See TurboTaxDeeS's answer for reference.

https://ttlc.intuit.com/replies/6506429

Level 15
Jun 3, 2019 4:53:18 PM

Note: If any part of the Roth distribution comprised of your own prior Roth contributions then that portion is already both tax and penalty free so do not include it in the lifetime $10,000 first time home buyers exemption.  Only include any amount that exceeded your contributions.   After the 1099-R summary screen you will be asked to enter your prior year Roth contributions not previously withdrawn.   There is no need to exhaust the lifetime limit if it was not used to offset earnings only.