ROTH IRA WITHDRAWAL

[jmbillmeyer]

I HAVE A CLIENT WHO TOOK A DISTRIBUTION FROM HIS ROTH IRA. I THOUGHT THAT WITHDRAWALS OF CONTRIBUTIONS ARE ALWAYS TAX AND PENALTY FREE, HOWEVER PROSERIES PROFESSIONAL IS CALCULATING THE ADDITIONAL 10% PENALTY. NOT SURE IF I ENTERED SOMETHING INCORRECTLY? THANKS IN ADVANCE FOR THE HELP!

[dkh]

Did the client withdraw more than was contributed? 

[dascpa]

First off - all uppercase means SHOUTING.

Was the Roth held for 5 years? Is the Code on the 1099-R and in your input correct?  Is there basis for a Roth listed in the software? The 10% penalty "can" happen if it's not a "qualified Roth" and the taxpayer is under age 59 1/2 (research ordering rules of Roth distributions). Typically this situation ends up being user input error.

[jmbillmeyer]

No he didn't

[dkh]

What code is on 1099-R ?     Client under 59-1/2 ?    

[IRonMaN]

Maybe I'm not as good with numbers as I should be, but I think @dascpa had a lot more questions than what was actually answered.

[TaxGuyBill]

Did you enter the "Basis" of the Roth IRA?