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I have a 1099 R distribution from a roth with a J code 0 in taxable amount but there is a early withdrawal penalty , when I enter the 1099 R its taxes the entire amount and adds the penalty how do I adjust the taxable amount

taxgal812
Level 1
 
0 Cheers
2 Comments 2
Jim-from-Ohio
Level 11
Level 11

There could be a "basis" in the Roth where that can make that just a return of basis.  Scroll down about half way down on the 1099-R worksheet and click the QuickZoom to enter Roth Basis.

Terry53029
Level 14
Level 14

Code J in box means it is an early withdrawal from ROTH IRA and subject to 10% early withdrawal penalty if under 591/2. for the taxable amount it depends on what he did with the money. rollover, emergency, went to Vegas, etc. Note his contribution in the IRA is never taxable, only the gain of the distribution if not held for 5 years.