TT is showing that I owe tax and penalty if I amend my Roth distribution (code J) to show I cashed out. This is a return of contributions and I've met the 5 year holding

[macuser_22 · Accepted solution]

After the 1099-R entries screen

Owned for 5 years?

Were and Roth IRA's Open?

Withdrew before 2016?

Enter Prior year contributions..

[jzet]

Ah ha!  I see now what you mean my "after the 1099 entries screen".  Not sure why it doesn't just ask those questions up front

[jzet]

Thanks!

[macuser_22]

It asks for additional 1099-R's first since you might have several so the follow-up questions only come after entering them all.

[dmertz]

TurboTax permitting users to jump from topic to topic makes it extremely common for people not to click the Continue button on the Your 1099-R Entries page when they need to.

[macuser_22]

You can always withdraw your own Roth contributions tax and penalty free.

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One of the followup questions will ask for your prior year contributions not previously withdrawn.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.

[jzet]

Thank you for your feedback.  I've done everything you mentioned multiple times.  There is no follow up question at the end regarding prior year contributions though.  Any thoughts?

[macuser_22]

It is in the second part after the 1099-R entries screen.