Catherine Posted February 13, 2009 Report Share Posted February 13, 2009 Client was in phase-out area for Roth IRA contribution but had made a full contribution early in 2008. She removed the excess contribution amount to comply with limits before the end of the year. 1099-R came through as code "J"; early Roth withdrawal no known exception. What's the best way to handle this in ATX? The amount is _not_ taxable but is showing up as such. I can think of about three ways to do it but perhaps someone out there knows the "best" way. Thanks. Catherine Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 13, 2009 Report Share Posted February 13, 2009 Client was in phase-out area for Roth IRA contribution but had made a full contribution early in 2008. She removed the excess contribution amount to comply with limits before the end of the year. 1099-R came through as code "J"; early Roth withdrawal no known exception. What's the best way to handle this in ATX? The amount is _not_ taxable but is showing up as such. I can think of about three ways to do it but perhaps someone out there knows the "best" way. Thanks. Catherine I'm glad that you asked that question. I had one come in this afternoon and one yesterday. I am thinking of the 5329 but am curious as to what others think. Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 13, 2009 Report Share Posted February 13, 2009 I'm glad that you asked that question. I had one come in this afternoon and one yesterday. I am thinking of the 5329 but am curious as to what others think. Form 5329 is also my first thought. I'm not at work right now, but I'm pretty sure exception code 12 "other" would cover this. I have used the "other" exception in the past when a distribution code was incorrect, but not for this situation, so I could be wrong. Quote Link to comment Share on other sites More sharing options...
imjulier Posted February 13, 2009 Report Share Posted February 13, 2009 When I had this a few years ago I used the 5329. 1099 R showed earnings on the money as taxable amount. The taxable amount is subject to the 10% penalty. If no earnings, taxable amount should be zero. ATX handled all this from the 1099R input and my conclusion was that this was correct. Julie Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 13, 2009 Author Report Share Posted February 13, 2009 When I had this a few years ago I used the 5329. 1099 R showed earnings on the money as taxable amount. The taxable amount is subject to the 10% penalty. If no earnings, taxable amount should be zero. ATX handled all this from the 1099R input and my conclusion was that this was correct. Julie I had been wondering if I needed to attach a statement saying the coding was not correct _in addition_ to the 5329. But it sounds like other folks' experience is that this is not needed so long as the tax treatment is correct after filling out the 5329. Thanks, all. Catherine Quote Link to comment Share on other sites More sharing options...
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