topic Re: Roth Problem in Deductions & credits

Roth Problem

REB1947 — Thu, 28 Jan 2021 00:53:17 GMT

Bought Roth IRA in March 2020. Working on Turbo Tax Deluxe for 2020 and it says I had no earned income and couldn't buy Roth. I searched info and it said I had to sell Roth and pay taxes on any profits. I sold Roth and money is in the bank. How do I finish my 2020 taxes now on Turbo Tax Deluxe.

Thanks,

REB1947

Re: Roth Problem

Hal_Al — Thu, 28 Jan 2021 00:58:50 GMT

You wait for the form 1099-R from the bank. The taxes (withholding) you paid will be shown in box 4 of the form and should be entered in TurboTax.

Re: Roth Problem

REB1947 — Sat, 30 Jan 2021 10:15:04 GMT

1099 won't be issued till 2022, so it goes on next year's taxes?

Re: Roth Problem

Hal_Al — Sat, 30 Jan 2021 13:06:55 GMT

Sorry, I didn't pick up on the fact that you withdrew the money in 2021.

Q. 1099 won't be issued till 2022, so it goes on next year's taxes?

A, Yes. Report the distribution on your 2021 tax return.