nolanm
Level 4
‎08-18-2021 02:23 PM

Hi all

TP contributed $6k to Roth in 2020, it grew to $7k by end of year. He withdrew the $6k in late 2020 generating 1099-R with code J. I entered the 1099 as well as the contribution in line 19 on Roth contribution sheet, so looks good with no tax in 1040 as the $6k is basis. Questions:

1. Do I need to enter the $1k balance in the Roth at end 2020? If so where?

2. His MA state return is pulling the $6k distribution through as taxable. MA does not have a place to add a contribution or basis. I can just overwrite the $6k that pulls through as "0". The 1099 sheet in MA does show the $6k, so concerned that a conflict that MA questions.

Thanks as usual for any help

Nolan

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Terry53029
Level 15
Level 15
‎08-18-2021 02:40 PM

On 1099R worksheet about half way down. Quickzoom to enter Roth ira basis. Can't help with MA, but maybe some will help you that does MA returns

nolanm
Level 4
‎08-18-2021 06:29 PM

Thank you Terry, yup enetered the Roth basis. I don't believe that I need to show the closing Roth balance at end 2020, only that the Roth is still open. Please correct me if I am wrong?

 

Figured MA. There is a line for taxes prev paid on Roth contribtion in the MA return. Entering basis here removes the Roth distribtution from income taxable in MA.

 

Thanks Nolan 

George4Tacks
Level 15
‎08-18-2021 06:48 PM

Just curious - Was the Roth IRA withdrawal because the client was not eligible for a Roth? 


Answers are easy. Questions are hard!
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nolanm
Level 4
‎08-18-2021 07:20 PM

Yeah good question. No he was eligible.AGI around $105k. Just had an investment opportunity and withdrew basis.

Regards Nolan 

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