Roth Distribution from contribution

LDomingue — Tue, 25 Feb 2025 16:33:51 GMT

Hello.

I took out money from my Roth Contributions. I have a 1099-R with the gross distribution (taxable amount not determined box is checked) and a letter from my financial advisor showing my yearly and total contributions that says I should not be taxed. But I do not understand how to enter this information in Turbo Tax. Any advice would be appreciated.

Re: Roth Distribution from contribution

AnnetteB6 — Tue, 25 Feb 2025 16:39:28 GMT

If your distribution from your Roth IRA is less than the total contributions you have made to the account, then your distribution will be tax free. The key is entering the Roth IRA basis into TurboTax.

After you enter your Form 1099-R, there should be some follow-up questions to go through. One of those questions will ask about Prior Year Roth IRA Contributions. This is where you should enter the amount that had been contributed to the account.

If you do not see those follow-up questions, then go to Deductions and Credits > Retirement and Investments > Traditional and Roth IRA Contributions.

This will bring you to a screen with checkboxes to indicate what types of accounts you had in 2024. Be sure that Roth IRA is checked. Click Continue.

If Traditional IRA is checked or if you have a spouse that had either type of account, the next questions will not pertain to your Roth IRA. Continue through this section until you are asked whether you made any contributions to your Roth IRA for 2024. This is the beginning of the section where you will enter details about your Roth IRA, including the basis.

Continue answering the questions according to your situation. On the screen where you see Let Us Track Your Roth IRA Basis, click Yes.

Then, on the screen titled Enter Prior Year Roth IRA Contributions, this is asking for your total contributions for years prior to 2024 (basis). If your basis exceeds your distribution, then the distribution will not be taxable. If the distribution exceeds your basis, then the excess will be taxable.

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Roth Distribution from contribution

Re: Roth Distribution from contribution