withdrawal of contributions from a Roth - Tax Forms

Earlier in the year, I withdrew 10K from one of my Roth IRA's that I've had established for some 10 years or so. Even though I am under

59 1/2, my understanding is that contributions made to a Roth IRA are eligible to be removed tax free and without penalties at any time.(it is only the earnings that are taxable). If this is true and I believe it to be, what tax form am I going to need to explain this to the gov and is it important that my financial institution characterizes this in a certain way, so that the govt doesn't think I'm doing something improper?

Thanks! Mark

Reply to
ATHiker95
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You use form 8606. Part III is for non-qualified distributions from a Roth. It asks how much you took out, and a couple of lines later what your basis is (which in your case is the amount you contributed). Subtract to calculate the taxable amount, which should be zero if you are withdrawing less than you put in.

You will get a 1099-R from the financial institution, which should be coded as J in box 7 since you are under 59-1/2. The code J is what tell the IRS to look for a form 8606.

Reply to
Don Priebe

Thanks Don! I did some more research in the meantime and noticed the instructions here for line 19

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If I read these correctly, I wouldn't put anythingon Line 19, but rather the amount I took out on , line 15A of the1040. Would you concur, or? Thanks, Mark

Reply to
ATHiker95

I read that line to mean you don't enter any contributions on line 19 of the

8606 that were both made and returned in 2007. (It refers back to page 4 of the instructions. Since the web version of the instructions doesn't have page numbers you're sort of lost unless you look at the .pdf version at
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In any case you are correct the gross amount of the withdrawal ends up on line 15a of the 1040 and line 15b is -zero-.
Reply to
Don Priebe

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