You should be paying tax only on the earnings from distributions out of your Roth IRA. In a nutshell, as long as your Roth has been open for at least five years, you can withdraw as much as you want (if you're 59½ or older) or anything up to the amount you put in (if you're under 59½) without any taxes or penalties. Check to see if you have a different amount in box 2a versus box 1. Compare with your investment or cost (amounts you contributed to your Roth IRA) with the taxable amount in box 2a.
Check your distribution codes. What are all the distribution codes in box 7 of my 1099R?
If you are 59 1/2 or older:
- Withdrawals from a Roth IRA you've had less than five years. If you haven't met the five year holding requirement, your earnings will be subject to taxes but not penalties.
- Withdrawals from a Roth IRA you've had more than five years. If you've met the five year holding requirement, you can withdraw money from a Roth IRA with no taxes or penalties.
If you are under 59 1/2 years of age:
- Withdrawals from a Roth IRA you've had less than five years. If you take a distribution of Roth IRA earnings before you reach age 59½ and before the account is five years old, the earnings may be subject to taxes and penalties. (Exceptions may apply)
- Withdrawals from a Roth IRA you've had more than five years. If you're under age 59½ and your Roth IRA has been open five years or more, your earnings will not be subject to taxes if you meet one of the approved conditions. (See Qualified Distributions)
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