Tax on early distribution

SLYKTAX · ‎March 3, 2022

Does anyone know why the TAX Return I am working on said I have a $14 tax on early distribution?

My wife and I are not under 59 1/2 . We will be 72 at the end of the year. In 2020 we both made ROTH contributions and withdrew in 2021 before TAX return day. Thanks.

MayaD · ‎March 4, 2022

You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free.

However, the five-year rule for Roth IRA distributions specify that 5 years must have passed since the tax year of your first Roth IRA contribution before you can withdraw the earnings in the account tax-free

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dmertz · ‎March 4, 2022

An individual who is over age 59½ at the time that individual receives a return of contribution from a Roth IRA accompanied by taxable earnings must claim an Other reason exception to the penalty on the taxable amount shown in box 2a of the code JP or J8 Form 1099-R.