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New Member
posted Feb 25, 2025 2:05:12 PM

Should there be an Roth IRA early withdrawal penalty if the withdrawn amount is less than I've contributed?

I've totaled the amounts I've contributed over the years and I am confident that I have not withdrawn more than my contribution amount.

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1 Best answer
Level 15
Feb 25, 2025 3:23:10 PM

Did you run all the steps of the interview or did you exit early?  When entering a 1099-R from a Roth withdrawal, you must keep hitting continue to run all the steps of the interview.  You will eventually be asked for the total of prior year contributions and conversions, and prior year withdrawals.  (Any current year contributions are entered in the Roth IRA section on the deductions page.)  If your withdrawal is less than your current balance of contributions (contributions minus previous withdrawals) it won't be taxable, but Turbotax doesn't know this unless you give it the details. 

2 Replies
Level 15
Feb 25, 2025 3:09:52 PM

You must take into account the 5-year rule.

How old is your Roth IRA.?

 

@bboyritus 

Level 15
Feb 25, 2025 3:23:10 PM

Did you run all the steps of the interview or did you exit early?  When entering a 1099-R from a Roth withdrawal, you must keep hitting continue to run all the steps of the interview.  You will eventually be asked for the total of prior year contributions and conversions, and prior year withdrawals.  (Any current year contributions are entered in the Roth IRA section on the deductions page.)  If your withdrawal is less than your current balance of contributions (contributions minus previous withdrawals) it won't be taxable, but Turbotax doesn't know this unless you give it the details.