topic Re: Roth IRA distribution in Get your taxes done using TurboTax

Roth IRA distribution

CliffRat — Sun, 16 Feb 2020 20:45:07 GMT

I took the full amount of a Roth IRA. The 1099-R shows the full amount, base and interest in box 1. Box 2 is blank. Both boxes in 2b are checked. The distribution code is T.

What is the best suggestion for entering the info so that I am only taxed on the interest? Using only the info on the form causes the whole thing to be taxed.

Re: Roth IRA distribution

DanaB27 — Sun, 16 Feb 2020 22:49:41 GMT

After you entered your 1099-R TurboTax will ask you follow-up questions. Please answer the question "Owned Any Roth IRA for Five Years?" and the questions after carefully.

Please follow these instructions to enter your Form 1099-R :

Login to your TurboTax Account
Click "Federal" from the left side of your screen
Click "Wages & Income" on the top
Scroll down and click "Start or Edit/Add" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Click "I'll Type it Myself"
Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
Click "Continue" and enter your 1099-R
Continue through the questions

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 4b (taxable amount).

To preview Form 1040:

Click on "Tax Tools" in the left menu
Click "Tools"
Click "View Tax Summary" in the Tool Center window
Click on "Preview my 1040" on the left

Re: Roth IRA distribution

CliffRat — Sun, 16 Feb 2020 22:14:46 GMT

Thank you but this doesn't answer the question. Here's an example:

Opened Roth IRA for 5000.00 early 2016.

Interest gained of 100.00

Took full 5100.00 out 10/2019

The 1099 only shows the 5100.00 distribution, it does not show a taxable amount which should be 100.00.

So the calculations are including the whole amount as taxable not just the 100.00,

For the sake of accuracy I think I need to enter the substitute 1099 steps.

Re: Roth IRA distribution

DanaB27 — Sun, 16 Feb 2020 22:49:01 GMT

Did you enter the $5,000 at the "Enter Prior Year Roth IRA Contributions" question? Then it should show on Form 1040 on line 4a $5,100 and on 4b $100.

Re: Roth IRA distribution

CliffRat — Mon, 17 Feb 2020 15:44:50 GMT

That did it! Thank you so much!