Roth IRA Withdrawal

[user17707458914]

I took an early withdrawal of my Roth IRA but only after tax contributions I've made over the last 7 years. I received a 1099-R with the amount withdrawn and Code J marked in Box 7. Does anyone know how to navigate  TurboTax 2025 to indicate that this is nontaxable? Every way I've tried, the software says I need to pay a taxable fee. Thanks in advance for any assistance you can provide!

[MaxA1]

You will need to figure out your ROTH IRA basis and Fair Market Value (FMV) of your Roth IRA account in order to determine how much of your distribution is taxable.  If you have been reporting your ROTH contributions and the fair market value (FMV) at the end of each year on your tax returns, TurboTax should have this information.  If not, you will need to get this information from the financial institution that handles the Roth IRA account.  You will need to know (1) your total Contributions made to the ROTH IRA account and (2) the FMV of the ROTH IRA account as of 12/31/25.  Once you have these two figures, go to the 1099-R section in TurboTax and go through the interview questions and enter that information so TurboTax calculates the amount that is subject to penalties.

See the following links for more information:

• Where do I enter my traditional or Roth IRA contributions?
• What do I do with Form 5498?
• What is Form 5329: Additional Taxes on Qualified Retirement Plans?
• What is IRS Form 8606: Nondeductible IRAs

[dmertz]

Year-end FMV is not used in the calculation.  All that is needed for the calculation on Form 8606 Part III is basis in Roth IRA contributions and conversions.