Roth IRA Withdrawals

[LennyGATC]

Hi, when I set up our Roth IRAs back in the early 2000's, the big sell on this type of IRA was that you're using taxed monies to fund the IRA and that all future earnings would not be taxed, as long as the withdrawals are under normal circumstances. Why is there a question now, for the first time, under the 1099-R section, asking about prior Roth contributions ?  To tell you the truth, I have no idea. The last contribution I made was maybe in Aug 2011.  Are they planning to change the rules and now start taxing earnings from a Roth IRA ?  Or am I misreading this whole section ?  Thanks.

[macuser_22]

It only matters if you are under age 59 1/2 and subject to early withdrawal penalties.

You can always withdraw your own Roth contributions tax and penalty free reguardless of age.

One of the followup questions will ask for your prior year** contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.

Note: **Prior year - any current year Roth contributions should be entered into the IRA contributions section. They will not show up in the prior years contributions but will be accounted for on the 8606 form that calculates the taxable amount.

[LennyGATC]

Okay, thank you.  It's still going to be some work, since I have been withdrawing for a few years with no new contributions, but I imagine workable.

Thanks again.