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.
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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.
You need the ROTH basis in there, I think theres a quickzoom button right on the 1099R worksheet if you scroll down.
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
She rolled it from a 457 roth to an IRA roth last year, so she hasn't met the 5 year rule tes.
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.
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