Roth contribution withdrawal and form 8606 on TurboTax

I opened a Roth IRA in 2008 with $2500. In 2011, I withdrew $2000. I did not withdraw earnings. I know that I need to fill out form 8606 and the 1099-R section on Turbo Tax, but it's so confusing. I did not receive a 1099-R from Sharebuilder, but perhaps I will?

Regardless, am I correct that because I only withdrew the contributions and not any earnings, I will not have to pay the early penalty?

Line 22 says "enter your basis in Roth IRA contributions". This, according to the instructions for form 8606, seems to be the total of distributions prior to 2011 (which was none), plus the total contributions (which was $2500). Since I took out less than $2500 (and none of it was earnings), then my taxable amount is 0. That is, if I filled out the form correctly!

I plan on having my taxes done by a CPA, but I'm just trying to see if I can understand this correctly.

    The issue of liability for the 10% penalty on early distributions varies depending on whether or not this Roth account as created through a Roll-over from a Traditional IRA or other deferred income account, or whether you opened the Roth fresh using after tax monies.
    • Thanks, that helps. This was not a rollover. It was created fresh using after tax money. The questions in part 3 of form 8606 seems to be a little different than the questions on Turbo Tax.
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