joanmcq Posted March 2, 2017 Report Share Posted March 2, 2017 Client took $7500 out of her Roth for a first home. On the 8606, first time homebuyer is listed as an exclusion before basis and all of her distribution qualifies. Do I still reduce her basis by the full amount? In other words, can I elect to treat some of it as distribution of earnings? Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 2, 2017 Report Share Posted March 2, 2017 If that money was in the Roth for more than 5 years, no explanation needed and nothing is taxable. 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 3, 2017 Author Report Share Posted March 3, 2017 Still need to do the 8606. And the earnings are subject to penalty. Quote Link to comment Share on other sites More sharing options...
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