ROTH IRA FOR 1st TIME HOME PURCHASE

Forum|Forum|4 years ago
April 15, 2022
2 replies
4 views

Taxpayer withdrew 80,000 from Roth IRA, has owned the account for over 5 years and used the total distribution for purchase of a first home. Where do you enter the exclusion? 1099-R has a code J.

ProSeries Professional

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Best answer by TaxGuyBill

Lisa, it is tax free (up to $10,000).

https://www.irs.gov/publications/p590b#en_US_2020_publink1000231061

@twisniewski7 It is a few lines under line 19 of the 1099-R worksheet.

abctax55

Level 15

How old is the taxpayer?

Which "exclusion" are you referring to?

HumanKind... Be Both

T

twisniewski7Author

Level 3

Taxpayer is 36. Account has been opened over 5 years. Contributions are not taxed. I read that the withdrawn earnings are both tax- and penalty-free as long as you use them to buy, build, or rebuild a home.

Just-Lisa-Now-

Intuit Community Champion

no, not tax free....theres an exception to the penalty for early withdrawal on the first 10k used for for first time homebuyers.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Just-Lisa-Now-

Intuit Community Champion

Youre looking for the place to enter the ROTH basis so its not taxable....scroll down the 1099R worksheet you should see a quickzoom button to the ROTH basis worksheet.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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