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martinjmac
New Member

Roth IRA principle only withdraw, how can I report this in turbo tax? When I enter the info on my 1099-R turbo tax applies taxes and penalty for my principle withdraw.

 
2 Replies
AmyC
Expert Alumni

Roth IRA principle only withdraw, how can I report this in turbo tax? When I enter the info on my 1099-R turbo tax applies taxes and penalty for my principle withdraw.

If it is not a qualified withdrawal, you would have tax and penalty.

 

The IRS says in Roth IRA Distributions:

You don't include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s). You also don't include distributions from your Roth IRA that you roll over tax free into another Roth IRA. You may have to include part of other distributions in your income. See Ordering Rules for Distributions , later.

 

What Are Qualified Distributions?

A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements.

  1. It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and

  2. The payment or distribution is:

    1. Made on or after the date you reach age 59½,

    2. Made because you are disabled (defined earlier),

    3. Made to a beneficiary or to your estate after your death, or

    4. One that meets the requirements listed under First home under Exceptions in chapter 1 (up to a $10,000 lifetime limit).

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martinjmac
New Member

Roth IRA principle only withdraw, how can I report this in turbo tax? When I enter the info on my 1099-R turbo tax applies taxes and penalty for my principle withdraw.

I have spoke with my bank and have been asured that my princple withdraw should NOT be taxed.

 

How do I capture that I only withdrew my princple? 

 

On the TubroTax FAQ for "Are withdrawals from a Roth IRA taxable?", the first statment is quoted.

"You can take out whatever you put into your Roth, tax-free, because you already paid taxes on that money."

 

Thank you.

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