I had a Roth IRA for the past 11 years and sold part of it last year to offset student loans. Why pay Tax when I did so?

[mwangip1]

I had a Roth IRA for the past 11 years and sold part of it last year to offset student loans. Why pay Tax when I did so?

[FangxiaL]

Roth IRA distribution is first in, first out, which means you don't pay tax on the money you contributed to Roth IRA. If you are at least 59 1/2 years of age when you take the money out, you don't pay tax on the earnings either. When you enter Form 1099-R, you need to let TurboTax know how much is your basis in the Roth IRA account.