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Level 1
posted Apr 8, 2023 1:13:56 PM

Form 1099-R Gross Distribution But Taxable amount shows 0

We had an employer sponsored Traditional IRA direct rolled over to our Roth IRA.  The Traditional IRA was with Company N.  The 2022 Form 1099-R from company N showed the Gross Distribution amount of $##,###.## but the Taxable amount in box 2a shows $0.00.  We want to not be taxed when we eventually cash out our Roth IRA.  Do we need to calculate and pay the tax for the Gross Distribution amount ourselves for tax year 2022 or did Company N give us wrong information and need to request a new 2022 Form 1099-R?

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1 Replies
Level 7
Apr 9, 2023 4:47:42 PM

No you do not need to calculate the taxable amount.  No, you do not need to request a new 2022 Form 1099-R. You can take out whatever you put into you Roth tax free because you have already paid taxes on the money.

 

You can also make tax-free withdrawals on any additional earnings in your Roth IRA unless either of the following are true:

  • You're making the withdrawal less than five years after establishing the Roth.
  • You're making an early withdrawal (before age 59½) without the exception for death, disability, or the $10,000 first-time homebuyer distribution.