topic Roth IRA withdrawal in Retirement tax questions

Roth IRA withdrawal

Camp2115 — Mon, 16 Mar 2020 16:46:13 GMT

I withdrew $4000 from my Roth IRA which was from the original after tax $8000 I initially invested! I received from my financial company a 1099-R but after entering the info in Turbotax I am being taxed on the $4000. I have called my financial company and reviewed with them and they say it should not be taxed! but as I read help on turbotax I see that I have not put in the previous years amount that I had made the first contribution! I did see it at one time and did not enter anything, but now I can't seem to find where that is in turbotax to enter the initial amount which I think would remove the tax burden on the $4000. Thank You

Re: Roth IRA withdrawal

ColeenD3 — Mon, 16 Mar 2020 17:02:20 GMT

When you get to the screen that titled "Enter Prior Year Roth IRA contributions", make sure you are entering the total amount of all your previous Roth contributions. So if you contributed $8,000 to your Roth IRA in prior years, you will put $8,000 in the amount box on this screen.

You can always withdraw contributions (but not earnings) that you made to your Roth IRA tax and penalty free at anytime. Additionally, the Ordering rules for withdrawals from a Roth IRA are: first from regular contributions, then from Conversion and rollover contributions, on a first-in, first-out basis and finally from Earnings on contributions

Re: Roth IRA withdrawal

dmertz — Mon, 16 Mar 2020 17:33:14 GMT

To reach the questions that ask about your basis in Roth IRA contributions and conversions, click the Continue button on the Your 1099-R Entries page.