The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Roth IRA early distribution penalty||Date: 2/4/2013 12:09 PM|
|Author: RBMunkin||Number: 117617 of 119695|
Just wondering why a friend of mine doesn't need to pay a penalty for early distribution of his Roth IRA. In Turbo Tax he has a 1099-R filled out and before choosing the Box 7 code he did show a much higher tax due. But as soon as he choose code "J" for Box 7, the extra tax due disappeared and it went back to what he owed prior to entering the 1099-R. Does this make sense?
There was no exception chosen, like first time home buyer, etc.
|Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|