for age under 59 1/2 - are earnings from excess Roth contribution subject to 10% penalty

[hgtc]

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.

[TaxGuyBill · Accepted solution]

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.

[hgtc]

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.