for age under 59 1/2 - are earnings from excess Roth contribution subject to 10% penalty

Forum|Forum|1 year ago
March 22, 2025
1 reply
7 views

Client over-contributed Roth 401k and Roth IRA in 2023 . He withdrew them before filing 2023 tax returns. In 2024, he received 2 form1099-R with code "8J" and "8B" (from Charles Schwab and Fidelity). He is under 59 1/2.

Are both earnings subject to 10% early withdrawal penalties? (because Lacerte report 10% for the one with code "8J" and skip the one with code "8B".)

Code 8J is Roth IRA account, code 8B is Roth 401k. Are tax treatment different?

Thanks.

Lacerte Tax

This topic has been closed for replies.

Best answer by TaxGuyBill

I know the treatment differs, but I would need to research exactly how they are different.

For what it is worth, ProSeries treats it the same way as you are saying Lacerte is doing it.

T

TaxGuyBillAnswer

Level 15

I know the treatment differs, but I would need to research exactly how they are different.

For what it is worth, ProSeries treats it the same way as you are saying Lacerte is doing it.

H

hgtcAuthor

Level 5

Thanks to know ProSeries treates it the same as Lacerte does. I searched and could not figure out why different. Appreciate if someone has the answer.

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