topic Should I be paying tax on a Roth IRA withdrawal for 2024 if I only withdrew my CONTRIBUTION amount ($7000), NOT the EARNINGS? in Retirement tax questions

Should I be paying tax on a Roth IRA withdrawal for 2024 if I only withdrew my CONTRIBUTION amount ($7000), NOT the EARNINGS?

Umer-Mian — Tue, 03 Feb 2026 06:03:53 GMT

In May 2024, I made the maximum contribution to a Roth IRA, $7000. In December 2024, my situation and I needed that money so I withdrew the CONTRIBUTION amount, i.e. $7000. My understanding was that this withdrawal would NOT be taxed because I only withdrew the CONTRIBUTION, not the EARNINGS. After entering the 1099-R into TurboTax, it's telling that I must pay tax in amount of 10% of the withdrawal, i.e. $700 in tax. Why is that?

Re: Should I be paying tax on a Roth IRA withdrawal for 2024 if I only withdrew my CONTRIBUTION amount ($7000), NOT the EARNINGS?

fanfare — Mon, 20 Jan 2025 15:37:34 GMT

You have to tell TurboTax the amount of your contributions less any contributions taken in earlier years.

@Umer-Mian .

Re: Should I be paying tax on a Roth IRA withdrawal for 2024 if I only withdrew my CONTRIBUTION a...

DavidD66 — Mon, 20 Jan 2025 15:39:46 GMT

Withdrawals of your Roth IRA basis (the amounts that you contributed to your Roth IRA) can be withdrawn at any time without taxes or penalties. Your 1099-R should have Distribution code - J in Box 7, which indicates "Early distribution from a Roth IRA, no known exception". Your answers to the questions TurboTax asks you after you enter or upload your 1099-R will determine whether or not your withdrawal is subject to tax and/or penalty. Review your 1099-R and make sure of the following:

Box 2a - Taxable Amount is blank
Box2b - Taxable Amount not determined is checked
You answer YES to "Did this money come from a Roth IRA"?
On the screen Enter Prior Year Roth IRA Contributions - Roth IRA Contributions prior to 2024 - The amount for contributions you enter must be at least as much as your withdrawal - $7,000.

You may need to delete your 1099-R in TurboTax and re-enter to access all of the questions.

Re: Should I be paying tax on a Roth IRA withdrawal for 2024 if I only withdrew my CONTRIBUTION a...

ArchesNationalPark — Thu, 13 Mar 2025 17:50:50 GMT

Reposted as a new question