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ROTH IRA withdrawl TurboTax??

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    ROTH IRA withdrawl TurboTax??

    So I am doing my taxes online on TurboTax rightn ow.
    Finally got to my Vanguard Roth Ira form. I ended up having to withdraw my contributions in 2012 due to losing my job. I know that withdrawing the contributions it's tax free no penalty. I called Vanguard and they said they don't deal with tax side of things.
    So do I need to put the withdraw in my turbotax? I tried it and they are making me pay big for it???

    Originally posted by investingnoob View Post
    I tried it and they are making me pay big for it???
    How so?
    If you're referring to an early withdrawal 10% tax,I suspect perhaps your 1099-R doesn't have the basis [cost] of your withdraw noted. You'll have to enter that if missing.


      I think Turbotax will take you through a list of questions to determine if it is taxable or not. You might be missing checking a box that says you withdrew original contributions.

      Also, I found this in my Turbotax. I checked "yes" when it asked if I received a 1099-R. You fill in the information as it shows on the 1099-R. Box 5 is where you designate Roth Contributions. I think if you designate them Roth Contributions, then it won't count them as taxable income. If there is nothing in box 5, I'm not sure what you do.

      Found this under "Explain This" next to Box 5.

      Employee Contributions/Designated ROTH Contributions (Roth 401(k))

      Employee contributions occur when you contribute to your own retirement account as an after tax contribution. When you take the money out, it may be tax-free. This could also represent the basis you have in your designated Roth account. The designated Roth after tax contributions may be taken out tax-free.