Question by : Early Withdrawal Roth IRA, 1099-R taxable amount?
I have had a series of ROTH IRAs open for more than five years. Over the course of that time, I’ve put in exactly 0 each year (/month), up until 2010 when I put in 0, then closed it partially through the year and cashed it out (waaayyy before I was 59.5 years old, and not under any of the “allowed” early withdrawal rules). I know this is bad business, but it had to happen. Anyway, the issue is that the amount that I withdrew is LESS than the total of my investments over the years (the funds lost value during the stock calamities of the early 2000s). My 1099-Rs showed taxable amount not determined. Since all my contributions were POST-tax, and I made NO gains on my total investment, am I able to say my taxable amount is zero? I tried running this through TurboTax, but it gave me no real way to show the fact that what I got was less than what I gave. Does the fact that only part of the contributions meet the five-years-in rule screw me over?
(Note: I’m fully expecting to be subject to the 10% penalty… but it would be nice not to be taxed on 00 of “income” that wasn’t really income).

Best answer:

Answer by Wayne Z
If you took out less than your total contributions, there should be ZERO taxes and ZERO penalty.

See Form 8606.

However, I have no idea as to how to get TurboTax to do this correctly.

Give your answer to this question below!