ETax847 Posted February 28, 2022 Report Share Posted February 28, 2022 Client is under age 59 1/2 and withdrew some of his contributions made to his Roth IRA. Since he is able to withdraw contributions he made to his Roth IRA anytime, tax- and penalty-free, how do I report this so there is no penalty incurred for the distribution of his contributions? Is this done on Form 8606 or 5329? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 28, 2022 Report Share Posted February 28, 2022 8606 handles Roth basis. Now you just need to figure out their total basis. Quote Link to comment Share on other sites More sharing options...
ETax847 Posted February 28, 2022 Author Report Share Posted February 28, 2022 Thanks for pointing me in the right direction! Quote Link to comment Share on other sites More sharing options...
ETax847 Posted February 28, 2022 Author Report Share Posted February 28, 2022 Form 5329 shows me a penalty of 10%. What input is needed to remove this? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 28, 2022 Report Share Posted February 28, 2022 8606 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 28, 2022 Report Share Posted February 28, 2022 Did he withdraw only his contributions, and does he meet the 5 year rule? Quote Link to comment Share on other sites More sharing options...
ETax847 Posted February 28, 2022 Author Report Share Posted February 28, 2022 Yes, thanks for all you help. Now I just wish ATX would release Form 1116. Quote Link to comment Share on other sites More sharing options...
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