topic I cashed in a Roth IRS after a holding period of 5+ years, but am still being taxed on it. Why is this? I withdrew the principal, not the cap gains. in Retirement tax questions

I cashed in a Roth IRS after a holding period of 5+ years, but am still being taxed on it. Why is this? I withdrew the principal, not the cap gains.

matthewkeller104 — Sat, 01 Jun 2019 20:37:04 GMT

Was Box 2B on the 1099-R checked for 'Taxable Amount not...

anne_nguyen — Sat, 01 Jun 2019 20:37:08 GMT

Was Box 2B on the 1099-R checked for 'Taxable Amount not Determined'? What was the distribution code(s) in box 7 of the 1099-R?

Thank you for your reply! "Taxable amount not determined...

matthewkeller104 — Sat, 01 Jun 2019 20:37:09 GMT

Thank you for your reply! "Taxable amount not determined" was indeed checked, and the code was "J" - Early distribution. Thanks!

What was the year of your first contribution?

anne_nguyen — Sat, 01 Jun 2019 20:37:11 GMT

What was the year of your first contribution?

2013. I held it for several months greater then 5 years.

matthewkeller104 — Sat, 01 Jun 2019 20:37:13 GMT

2013. I held it for several months greater then 5 years.

Does box 11 of your 1099-R have a year entered in it?

anne_nguyen — Sat, 01 Jun 2019 20:37:14 GMT

Does box 11 of your 1099-R have a year entered in it?

If you work thru the interview screens of the 1099-R, aft...

anne_nguyen — Sat, 01 Jun 2019 20:37:15 GMT

If you work thru the interview screens of the 1099-R, after you have answered the preliminary questions and come to a screen that shows 'My 1099-R Entries', if you select continue, there should be follow up questions that you should answer. Those answers should help you to get the correct result on your 1040 as far as the taxable amount (if any) on the 1040.

Since you are under age 59½, the fact that you've met the...

dmertz — Sat, 01 Jun 2019 20:37:16 GMT

Since you are under age 59½, the fact that you've met the 5-year holding period is irrelevant unless you are disabled or have used the money for a first-home purchase. If you are not disabled or using the money for a first-home purchase, the taxable amount of your distribution is determined on Part III of For 8606 by applying your basis in Roth IRA contributions and conversion. Be sure to click the Continue button on the Your 1099-R Entries page and tell TurboTax your basis in Roth contributions for years prior to 2018 and your basis in Roth conversion for years prior to 2018.