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Level 1

Where do I change my 1099-R distribution information for a first time home buyer? I had a Roth IRA for more than 5 years, and used 10,000 for a first time home purchase.

 
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Level 1

Where do I change my 1099-R distribution information for a first time home buyer? I had a Roth IRA for more than 5 years, and used 10,000 for a first time home purchase.

It depends -

If your Form 1099-R does not indicate that it is a qualifying distribution (code "Q" in box 7) but an early distribution (code "J"), then you will be able to indicate that it was for a first time home purchase on a landing screen after the screen where you indicate that the withdrawal was used for something else (See screenshot)

To enter 1099-R information in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "1099r" in the search bar then select "jump to 1099r". TurboTax will guide you in entering this information.

Roth IRA rules state that a first time homebuyer can withdraw funds from a Roth IRA under the following conditions:

  • The account has been open for five years.
  • You withdraw $10,000 or less to purchase a home.
  • The funds are used directly toward home acquisition (down payment, closing costs, etc.).

If the above criteria are met you can withdraw every last cent of your Roth IRA, up to $10,000, from the account. The $10,000 limit is a lifetime limit, by the way. If the rules are met, the withdrawal will count as a qualified distribution and you will avoid paying income tax and early withdrawal fees.

2 Replies
Level 1

Where do I change my 1099-R distribution information for a first time home buyer? I had a Roth IRA for more than 5 years, and used 10,000 for a first time home purchase.

It depends -

If your Form 1099-R does not indicate that it is a qualifying distribution (code "Q" in box 7) but an early distribution (code "J"), then you will be able to indicate that it was for a first time home purchase on a landing screen after the screen where you indicate that the withdrawal was used for something else (See screenshot)

To enter 1099-R information in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "1099r" in the search bar then select "jump to 1099r". TurboTax will guide you in entering this information.

Roth IRA rules state that a first time homebuyer can withdraw funds from a Roth IRA under the following conditions:

  • The account has been open for five years.
  • You withdraw $10,000 or less to purchase a home.
  • The funds are used directly toward home acquisition (down payment, closing costs, etc.).

If the above criteria are met you can withdraw every last cent of your Roth IRA, up to $10,000, from the account. The $10,000 limit is a lifetime limit, by the way. If the rules are met, the withdrawal will count as a qualified distribution and you will avoid paying income tax and early withdrawal fees.

Level 20

Where do I change my 1099-R distribution information for a first time home buyer? I had a Roth IRA for more than 5 years, and used 10,000 for a first time home purchase.

And note:  You can ALWAYS withdraw your own previous contributions from a Roth both tax and penalty free. Only the earnings are subject to the penalty, so you only need to exclude the earnings from the penalty.

For example, if you have previously contributed $8,000 to the Roth and now that has grown to $15,000, you can withdraw the entire $15,000 penalty free.   You would enter $8,000 as previous contributions and $7,000 as a home buyers exclusion and sill have $3,000 left in the lifetime $10,000 limit.