artp Posted February 21 Report Share Posted February 21 Taxpayer received 1099-R with Box 1 $1000, box 2 blank, box 2b checked and box 7 code J penalty applies, no known exception. $1000 in just part of original investment-no earning included. Best way to input this in software to show this to try to avoid IRS inquiry when not includable in come and not subject to early withdrawl penalty? Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted February 21 Report Share Posted February 21 8606 2 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 23 Report Share Posted February 23 On 2/21/2024 at 1:19 PM, Slippery Pencil said: 8606 You have to. Otherwise it populates as income even if you put zero in box 2. Quote Link to comment Share on other sites More sharing options...
artp Posted February 23 Author Report Share Posted February 23 It turns out he had 2 Roth accounts with total contributions of $1950. He received 2 1099-Rs. The one for $1000 as originally stated and a 2nd 1099-R for $1766 marked total distribution. So for the 1st one nothing should be taxable, no penalty and for the 2nd $816 of income + penalty, right? For $1000 Form 8606 line 19 $1000 with Roth basis $1000; for $1766 Form 8606 $1766 line 19 with Roth basis $950. Software will take the $819 to 5329 and calculate 10% penalty. Quote Link to comment Share on other sites More sharing options...
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