Client decided he didn't want his Roth anymore and took a full distribution. It was an early distribution, code J. From what I've read, the initial amount put into the Roth should not be taxable, only the gain on it. That gain could also be subject to Early withdrawal penalties.
However, regardless of how I enter this form, ProSeries is putting the full amount as taxable income.
Any tips?
Best Answer Click here
You'll need to input the basis (what he originally contributed), I think the 1099R worksheet has a button to take you right to where you need to go (near the bottom of Page 1).
You'll need to input the basis (what he originally contributed), I think the 1099R worksheet has a button to take you right to where you need to go (near the bottom of Page 1).
Funny, i had this issue yesterday and was going to write here but I found the answer, form 8606.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.