topic How do I characterize a ROTH IRA distribution as an emergency personal expense distribution in TurboTax? in Retirement tax questions

How do I characterize a ROTH IRA distribution as an emergency personal expense distribution in TurboTax?

MissingMyForm — Thu, 05 Feb 2026 11:36:53 GMT

I withdrew $1,000 from my IRA last year, and my understanding is that this should be penalty-free under SECURE 2.0. But neither my bank nor TurboTax has provided me an opportunity to clarify that this was an emergency personal expense distribution. Where can I make sure that this is classified as an emergency distribution so I don't get a penalty from the IRS?

Re: How do I characterize a ROTH IRA distribution as an emergency personal expense distribution i...

DanaB27 — Thu, 05 Feb 2026 16:56:26 GMT

You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. Therefore, you only will get the early penalty exception screen if you withdrew more than your contributions.

Login to your TurboTax Account
Click on "Search" on the top and type “1099-R”
Click on “Jump to 1099-R” and enter all your 1099-Rs
Click "Continue" on the "Review your 1099-R summary" screen after you entered all you Form 1099-R
Answer "Owned Any Roth IRA for Five Years?" screen
Continue through the questions until you get to the "What were your Roth IRA contributions prior to 2025?" screen and enter your net contributions (contribution before 2025 minus withdrawals before 2025)
On the "Did you convert a traditional IRA to a Roth IRA before 2025?" screen answer "Yes" if you made conversions before 2025
Continue through the questions.
If you withdrew more than you contributions then you will see the "Tell us which person may have qualified for a penalty exception" screen and select the edit symbol. If you only withdrew your contributions you won't see this screen.

Re: How do I characterize a ROTH IRA distribution as an emergency personal expense distribution in TurboTax?

Opus 17 — Thu, 05 Feb 2026 17:29:34 GMT

If, based on your past contributions, you are only withdrawing contributions now, there is no tax or penalty so you won't be asked about exceptions. If you start drawing into conversions or investment gains, then it becomes an issue.