dhoyt
Level 4

"this was the only open Roth?"

Correct this was the only open Roth in 2021. All others had been closed in the last few years. So at end of 2021 all Roth IRAs are gone.

"To meet the 5 year rule, funds removed in 2021 means the first contribution needed to be for tax year 2016"

Right, she has had a roth for over 10 years so the exact date isnt an issue. Proseries just lists it as "Roth opened before 2017,"  meaning the 2016 Tax year or before.

Confirmed with her never  any conversions.

"Remember that the Code is used by the issuer. They don't know about the rest of her life or what else is going on or what she did with the funds. The earnings might be taxable, but at 63, there should not be a penalty."

Yeah the code was the problem. Finding the nifty "code J but treat as qualified Roth" button was the ticket to fixing that.  

Lastly, the reason was she retired. Actually she bacame diabled. So she might have had a way out of it that way too if we needed it.

Thanks for the reply. This is one of those things that only comes up (for me anyway) every few years for one of my clients. I always do my rsearch first, but it's great to have a place to discuss this stuff and get some help.

 

0 Cheers