ajp
Level 7

Client decided he didn't want his Roth anymore and took a full distribution.  It was an early distribution, code J.  From what I've read, the initial amount put into the Roth should not be taxable, only the gain on it.  That gain could also be subject to Early withdrawal penalties.  

However, regardless of how I enter this form, ProSeries is putting the full amount as taxable income.  

Any tips?

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Just-Lisa-Now-
Level 15
Level 15

You'll need to input the basis (what he originally contributed), I think the 1099R worksheet has a button to take you right to where you need to go (near the  bottom of Page 1).


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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MICHAELMARS
Level 7

Funny, i had this issue yesterday and was going to write here but I found the answer, form 8606.

 

dlstricklin
Level 1

I'm having the same issue.  ProSeries is showing the full amount as taxable income.

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sjrcpa
Level 15

Same solution Lisa posted last year.


The more I know the more I don’t know.
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abctax55
Level 15

@dlstricklin 

Did you put info into the 8606 - as was pointed out LAST year?

 

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