ljwalters Posted February 16, 2015 Report Share Posted February 16, 2015 Client makes contribution to Roth in 2014. After her taxes were completed she made to much so had to remove the contribution. She did and received a 1099 R coded PJ, and all is being taxed and penalized. Early withdrawl should not be there because she is 64yrs of age. The 8606 is asking for the basis of the IRA contributions. Is that all contributions or just the 6500 she contributed in 2014 (and removed in 2014) Shouldn't she only be taxed on the interest earned, even the 1099R shows taxable amount 16.76. What am I doing wrong??? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 17, 2015 Report Share Posted February 17, 2015 Yes, she should only be taxed on the interest earned. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted February 17, 2015 Report Share Posted February 17, 2015 Not sure what you are dong wrong. I am not using ATX so I can't try to duplicate your entries. But.... KC is right she should only be taxed on the interest earned. Quote Link to comment Share on other sites More sharing options...
ljwalters Posted February 17, 2015 Author Report Share Posted February 17, 2015 Should there be any penalties? Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 17, 2015 Report Share Posted February 17, 2015 Asking very softly is a good start. I guess you don't want the IRS to hear you asking that question. No, there should not be any penalty. Quote Link to comment Share on other sites More sharing options...
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