I withdrew from my Roth IRA early. I entered in my information from my 1099-R form from my bank. I’ve had the account for more then 5 years and now TurboTax is asking:
“Enter Prior Year Roth IRA Contributions.
Confirm your net regular contributions prior to 2024 that remain in your Roth IRA.”
Then there is a spot asking for “Roth IRA Contributions prior to 2024”
Do I put in there the total contributions I’ve made to my Roth IRA since opening it? Or do I put in the amount that I have remaining in my Roth IRA?
Also, it tells me that I have to pay in $2,000 which is 10% of the amount I took but on my 1099-R form it shows that there was already federal tax withheld, so why am I still needing to pay in if taxes were already withheld?
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You need to enter the Roth IRA contributions you made in total up to the end of 2023 less any amount you withdrew before the end of 2023. The distribution you took in 2024 won't affect this. Here is what is says in TurboTax about this:
You don't need to pay additional tax since you already had the taxes withheld from your distribution. TurboTax is just telling you that your tax on the distribution is $2,000.
So let’s say I put in $10,000 from the year I opened it to the end of 2023; that’s the amount I would put in that box?
Yes, you enter the total contributions of $10,000 since you didn't withdraw anything before 2024.
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