Roth IRA

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I have a client that converted a 457 Roth in 2021 to a Roth IRA, she then took out a distribution in 2022. The distribution shouldn't be taxable but she does owe the 10% penalty. I can't figure out in the Proseries system to just figure the penalty without having to take the full distribution.

ProSeries Professional

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T

taxes96786Answer

Level 8

You need to make a calculation adjustment. Had the interest been paid on the account before transfer? You may need to include that in the adjustment.

Just-Lisa-Now-

Intuit Community Champion

You need the ROTH basis in there, I think theres a quickzoom button right on the 1099R worksheet if you scroll down.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

Did your taxpayer already have this (or any other) Roth IRA account for at least 5 years before taking this distribution? There are a bunch of rules for Roth distribution, including various 5-year rules:

https://www.investopedia.com/are-roth-ira-distributions-taxable-5220750

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