Jump to content
ATX Community

early distribution penalty and tax on earnings


tax1111

Recommended Posts

The taxpayer took distribution from roth IRA account. He is under 59.5 years old and the money has been in the roth ira accounts for over 5 years. 

The 1099R has empty box 2a and 2b is checked. box 7 code is J.

My understanding is that the earnings portion needs to be taxed as ordinary income and is subject to 10% penalty.

Am I right here?

If I am right, how can I figure out the amount of earnings based on 1099R?

The distribution is not a total distribution, so I guess I have to prorate the earnings based by total earnings of the roth IRA account when distribution was made times (distribution amount divided by total amount in the account when distribution was made) ? 

How can I get these information though? 

Thank you!

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...