1099R Penalty

[taxu2]

Client withdrew Roth IRA Contributions. Received 1099R with a distribution code of J. It's calculating the 10% penalty for early withdrawal. Is there a way to remove the penalty or should the 1099R be coded differently? I thought contributions could be withdrawn anytime without a penalty. 

[sjrcpa · Accepted solution]

Mak sure you have the basis entered.

Only the amount withdrawn in excess of that amount is subject to tax and penalty.

[Camp1040]

Should only be tax and penalties on earnings from the contributions.

[taxu2]

Thank you. I did not have the basis included.