Standard Roth IRA

[payforitnow1]

Why did my federal refund amount go down after I put in the amount I withdrew from my Roth? I am over 59 1/2 years old and have met the requirements to withdraw my money tax free?  

[JulieS · Accepted solution]

You can generally withdraw Roth IRA funds tax and penalty free if it is a qualified distribution.

A qualified distribution is a distribution from your Roth IRA that is made after the 5-year period beginning with the first tax year for which a contribution was made to a Roth IRA set up for your benefit.

In addition, the payment or distribution is:

• Made on or after the date you reach age 59½,
• Made because you are disabled.
• Made to a beneficiary or to your estate after your death, or
• One that meets the requirements listed for a first home purchase (up to a $10,000 lifetime limit).

If your distribution is qualified and TurboTax isn't treating it that way, you need to complete the extra IRA questions to show it's qualified. 

Here's how to find that:

1. Open your return.
2. Select Federal, then Wages & Income.
3. Scroll down to IRA, 401(k), Pension Plan Withdrawals (1099-R), under Retirement Plans and Social Security, select Start or Revisit to the right.
4. On the screen, Here's your 1099-R info, select Continue. 
5. Continue until you have answered all of the questions in the section.

The questions are based on your box 7 code, so if you don't see questions in this section about whether you have had a Roth for at least five years and how much you contributed, respond back with your box 7 code and TurboTax will help you further.