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Client over-contributed Roth 401k and Roth IRA in 2023 . He withdrew them before filing 2023 tax returns. In 2024, he received 2 form1099-R with code "8J" and "8B" (from Charles Schwab and Fidelity). He is under 59 1/2.
Are both earnings subject to 10% early withdrawal penalties? (because Lacerte report 10% for the one with code "8J" and skip the one with code "8B".)
Code 8J is Roth IRA account, code 8B is Roth 401k. Are tax treatment different?
Thanks.
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I know the treatment differs, but I would need to research exactly how they are different.
For what it is worth, ProSeries treats it the same way as you are saying Lacerte is doing it.
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Thanks to know ProSeries treates it the same as Lacerte does. I searched and could not figure out why different. Appreciate if someone has the answer.
