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ed0980
New Member

How to file 1099R J coded, from a withdrawal on my roth ira?

I opened a roth IRA 2 years ago, I deposited 5,500 in 2016 and 5,500 in 2017, this year I withdrew 6,000 for my wedding. The way I understand the rules of early withdrawals on roth iras is that I can withdraw any part of my basis (not earnings) at any time without penalty or taxes, am I wrong about this?, Vanguard sent me a 1099R with J code which suggest taxes and penalties. how do file in Turbotax? do I need to file a 5329 to explain my exemption? I never really understood the 5 year holding period, I thought that it really applied to earnings (not basis), If my withdrawal is not a legal distribution, I should not be taxed on money I paid taxes on, only the 10% penalty righ? 

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Accepted Solutions

How to file 1099R J coded, from a withdrawal on my roth ira?

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One of the followup questions will ask for your prior year contributions not previously withdrawn.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. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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12 Replies

How to file 1099R J coded, from a withdrawal on my roth ira?

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. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Mark13
New Member

How to file 1099R J coded, from a withdrawal on my roth ira?

see below

How to file 1099R J coded, from a withdrawal on my roth ira?

$6,500 if contributed in 2016 and withdrawn in 2017.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Mark13
New Member

How to file 1099R J coded, from a withdrawal on my roth ira?

Follow up question about the last paragraph:  I contributed 6500 in 2016 then withdrew it this year.  Would my answer to "prior year contributions not previously withdrawn" be 6500?
Mark13
New Member

How to file 1099R J coded, from a withdrawal on my roth ira?

OK thank you macuser_22.  I did contribute for tax year 2016 and withdrew in tax year 2017.  However technically the events both occurred in calendar year 2017.

How to file 1099R J coded, from a withdrawal on my roth ira?

It was still a 2016 contribution if done before April 18, 2017, for 2016.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
recj809
New Member

How to file 1099R J coded, from a withdrawal on my roth ira?

What if the contribution was in 2015 or in a year prior to 2016 but just withdrawn in 2017?

How to file 1099R J coded, from a withdrawal on my roth ira?

Enter as prior year contributions - see answer box above.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
recj809
New Member

How to file 1099R J coded, from a withdrawal on my roth ira?

@macuser_22 - Even thought the contributions were not made in the "prior year" but in previous years?
recj809
New Member

How to file 1099R J coded, from a withdrawal on my roth ira?

*Even though

How to file 1099R J coded, from a withdrawal on my roth ira?

What do I select for Box 7 to avoid taxes? I'm in the same boat. Took money from my Roth IRA - part of my contributions not any of the interest earned.

How to file 1099R J coded, from a withdrawal on my roth ira?

This is a year old post.  Please ask a NEW question and supply the details and do not tag onto someone else's old question.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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