Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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?
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.