taxu2
Level 5
07-18-2023
09:43 AM
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Client withdrew Roth IRA Contributions. Received 1099R with a distribution code of J. It's calculating the 10% penalty for early withdrawal. Is there a way to remove the penalty or should the 1099R be coded differently? I thought contributions could be withdrawn anytime without a penalty.
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sjrcpa
Level 15
07-18-2023
10:07 AM
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Mak sure you have the basis entered.
Only the amount withdrawn in excess of that amount is subject to tax and penalty.
The more I know the more I don’t know.
