Roth IRA

Forum|Forum|3 years ago
March 14, 2023
3 replies
22 views

I have a client that converted a 457 Roth in 2021 to a Roth IRA, she then took out a distribution in 2022. The distribution shouldn't be taxable but she does owe the 10% penalty. I can't figure out in the Proseries system to just figure the penalty without having to take the full distribution.

ProSeries Professional

This topic has been closed for replies.

Best answer by taxes96786

You need to make a calculation adjustment. Had the interest been paid on the account before transfer? You may need to include that in the adjustment.

Just-Lisa-Now-

Intuit Community Champion

You need the ROTH basis in there, I think theres a quickzoom button right on the 1099R worksheet if you scroll down.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

Did your taxpayer already have this (or any other) Roth IRA account for at least 5 years before taking this distribution? There are a bunch of rules for Roth distribution, including various 5-year rules:

https://www.investopedia.com/are-roth-ira-distributions-taxable-5220750

Don't yell at us; we're volunteers