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Level 2
February 15, 2025
Question

I have a 1099 R distribution from a roth with a J code 0 in taxable amount but there is a early withdrawal penalty , when I enter the 1099 R its taxes the entire amount and adds the penalty how do I adjust the taxable amount

  • February 15, 2025
  • 2 replies
  • 14 views
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2 replies

Jim-from-Ohio
Intuit Community Champion
February 15, 2025

There could be a "basis" in the Roth where that can make that just a return of basis.  Scroll down about half way down on the 1099-R worksheet and click the QuickZoom to enter Roth Basis.

Intuit Community Champion
February 15, 2025

Code J in box means it is an early withdrawal from ROTH IRA and subject to 10% early withdrawal penalty if under 591/2. for the taxable amount it depends on what he did with the money. rollover, emergency, went to Vegas, etc. Note his contribution in the IRA is never taxable, only the gain of the distribution if not held for 5 years.