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Level 3
March 13, 2026
Question

ROTH early distribution

  • March 13, 2026
  • 1 reply
  • 9 views

Client took early distribution from Roth.  1099-R reflected gross distribution in box 1 ($12,300); nothing in box 2a; box 2b checked.  (ProSeries checks box for Roth IRA). Everything else blank except box 7 - distribution code 'J'.  Taxpayer is 30 years old.  ProSeries shows $12,300 in 1040 lines 4a & 4b. Am I omitting something or has ProSeries gone rogue?  Thanks for your help.

Richard Ross

1 reply

Intuit Community Champion
March 13, 2026

You need the clients basis, as only earnings are taxed for a Roth IRA. The J means the earnings are subject to early distribution penalty. Once you have clients basis you have to enter it in ProSeries

richieAuthor
Level 3
March 13, 2026

Thank you - saw some posts relating to same after I added mine; you were quicker answering than I was canceling post.