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SmartestAnt
Returning Member

1099r distribution for withdrawal of current year contributions

I contributed $4000 to my Roth IRA in previous years, and an additional $1000 in 2019. Later in 2019, I withdrew the entire $5000. I received a 1099r from the custodian which shows $5000 as the gross distribution, and code "J" in box 7 (I am under 55 1/2 years old). My understanding is that no portion of this distribution should be taxable since it was all contributions and no earnings, but TurboTax only asks me about amounts contributed prior to 2019, so it is calculating a tax payable on the $1000 contributed in 2019. Is this a problem with TurboTax, my 1099r, or my understanding of the rules? Thanks in advance!

3 Replies
ColeenD3
Employee Tax Expert

1099r distribution for withdrawal of current year contributions

I just went through the program and tried to duplicate your entries and I did not get taxed on any of the income. Two things to check are that:

 

1) You entered your Roth IRA contribution correctly. I made sure I entered it before I answered any IRA questions in the 1099-R fields, just to be on the safe side.

2) You must have owned the IRA for 5 years.

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SmartestAnt
Returning Member

1099r distribution for withdrawal of current year contributions

Answered my own question- the current year contributions are entered separately later on, in the Deductions & Credits section. Once this section was complete it calculated the tax basis correctly.

ReginaM
Expert Alumni

1099r distribution for withdrawal of current year contributions

Should you have any additional questions on your IRA distributions, here is IRS Instructions for IRA Distributions.

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