Why is Turbo Tax saying my 15 year old Roth IRA withdrawal is taxable?

orolfo · ‎March 19, 2026

It's just a small withdrawal

Opus 17

If you are under age 59-1/2, your Roth IRA withdrawal may be taxable. You always withdraw contributions first, conversions second, and earnings last. Withdrawal of contributions is tax-free and withdrawal of conversions is tax free if it is more than 5 years since the conversion, but withdrawal of earnings is taxable if you are under age 59-1/2.

For example, if you contributed $2000 several years ago, and the balance is now $3000, and you withdraw it all, the $1000 earnings is taxable. Or, if you withdrew $1900 last year and the last $1100 this year, $1000 is taxable since that is earnings.

Turbotax should ask you about situations that will reduce your tax including the amount of your prior contributions and the amount of any prior withdrawals.

View solution in original post

Opus 17

If you are under age 59-1/2, your Roth IRA withdrawal may be taxable. You always withdraw contributions first, conversions second, and earnings last. Withdrawal of contributions is tax-free and withdrawal of conversions is tax free if it is more than 5 years since the conversion, but withdrawal of earnings is taxable if you are under age 59-1/2.

For example, if you contributed $2000 several years ago, and the balance is now $3000, and you withdraw it all, the $1000 earnings is taxable. Or, if you withdrew $1900 last year and the last $1100 this year, $1000 is taxable since that is earnings.

Turbotax should ask you about situations that will reduce your tax including the amount of your prior contributions and the amount of any prior withdrawals.