topic I was over 59 1/2 when I made a distribution, what should I check on the Turbo Tax form? in Retirement tax questions

I was over 59 1/2 when I made a distribution, what should I check on the Turbo Tax form?

mabradley09 — Tue, 04 Feb 2020 00:36:52 GMT

Can I avoid paying a penalty if I made a distribution at 59 1/2?

Re: I was over 59 1/2 when I made a distribution, what should I check on the Turbo Tax form?

VictorW9 — Tue, 04 Feb 2020 01:02:28 GMT

You will not have to pay penalty on a Roth withdrawal at age 591/2 if you meet certain criteria such as the account has been in existence for at least 5 years from the date of conversion.

So If the account is a Roth, then check the Turbo Tax resource for further information about penalty withdrawal.

Re: Withdrawal from ROTH IRA conversion - Community

Re: I was over 59 1/2 when I made a distribution, what should I check on the Turbo Tax form?

Rj1215 — Thu, 20 Feb 2020 19:09:39 GMT

So if a 401k after tax conversion was made into a Roth account in 2017 and a distribution was made in 2019 you have to pay taxes on money again?

Re: I was over 59 1/2 when I made a distribution, what should I check on the Turbo Tax form?

dmertz — Thu, 20 Feb 2020 19:22:06 GMT

To see that you are not being assessed an early-distribution penalty, check to see that there is no early-distribution penalty appearing on Schedule 2 line 6.

Except in the case where a 72(t) plan (a series of substantially equal periodic payments initiated with in the 5-years prior to reaching age 59½) is busted, there is never an early-distribution penalty for taking a distribution after age 59½, regardless of how long you had an IRA. TurboTax uses the code in box 7 of the Form 1099-R to determine if your distribution was received before or after reaching age 59½.

Enter the Form 1099-R as received.

If the code in box 7 of the 1099-R indicates that the distribution was made before you reached age 59½ but the distribution was actually made after age 59½, you can claim an Other reason exception to the early-distribution penalty.

Re: I was over 59 1/2 when I made a distribution, what should I check on the Turbo Tax form?

dmertz — Thu, 20 Feb 2020 19:25:38 GMT

No, it is not taxed again and because it was a nontaxable conversion, distributions of money attributable to this nontaxable conversion are not subject to penalty at any age. If the distribution is not a qualified distribution, the taxable amount of the Roth IRA distribution will be determined on Form 8606 Part III. To allow TurboTax to properly prepare Form 8606 you must click the Continue button on the Your 1099-R Entries page and answer the questions that follow regarding your basis in Roth IRA contributions and conversions.