Roth IRA withdraw

[gavinbrooks]

I am looking to make a small withdraw from my Roth IRA, I keep getting different answers on what I can and cannot do. I would like to take about 2000 to 3000 from the account. From what I understand, as long as I am only touching my contributions, I should not get a 10% penalty, nor should I be taxed. Is this true? And what paperwork should I be looking for? This IRA is all post tax contributions.

Thank you all for your help

[macuser_22]

Withdrawing your own prior Roth contributions are always tax and penalty free.      You would get a 1099-R and enter it this way.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

One of the followup questions will ask for your prior year** contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.

Note: **Prior year - any current year Roth contributions should be entered into the IRA contributions section. They will not show up in the prior years contributions but will be accounted for on the 8606 form that calculates the taxable amount.

[dmertz]

True.  See IRS Pub 590-B regarding the ordering rules for distributions from Roth IRAs:

https://www.irs.gov/pub/irs-pdf/p590b.pdf

macuser_22 describes the reporting on Form 8606 required to determine the taxable amount of any Roth IRA distribution that is not a qualified distribution.

Be aware the that rules for distributions from a Roth account in a qualified retirement plan (401(k), 403(b), 457(b) or the federal TSP) follow different rules because they are not Roth IRAs.  Distributions from Roth accounts in qualified retirement plans are are instead proportionate mix of contributions and earnings.