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Author: OneKindWord Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123037  
Subject: Re: Need tax info on IRA withdrawl? Date: 2/6/2003 9:35 PM
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Thanks a lot for the helpful info... guess I should have read the FAQ before posting!

However, I received a 1099-R form today from Ameritrade on this account - but it still does not clear anything up for me.

I have not yet purchased my tax program (trying to decide between TT which I've used for 3 years or TaxCut), maybe it would help me figure this all out, but I will go ahead and ask my questions here since there is such a wealth of knowledge and all seem happy to help.

I put $4000 into a Roth IRA in early 2001, and did not add any more.

Sold all positions and took the distribution in May 2002 to use as part of the downpayment on a house. Which I believe is one of the allowable reasons for early withdrawl.

Here is what is shown on my 1099-R:
Box 1(Gross distribution): $3856.48
Box 2a(Taxable amount): $3856.48
Box 2b: "Taxable amount not determined" is checked
Box 7 (Distribution code): J
"IRA/SEP SIMPLE" is checked

On the back of the form the information for code J is given as: "Early Distribution from a Roth (no known exception)".

Can anyone tell me what this means? I don't even really care to try and figure out how to deduct the loss on the account, but I don't want to pay taxes on the withdrawl (if I'm correct in my thoughts that a house downpayment is acceptable). Do I need any further documents? Will I be paying taxes on the distribution?
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