Message Font: Serif | Sans-Serif
No. of Recommendations: 0

I contributed $2600 to a new Roth IRA this past year. Towards the end of the year life dictated that I get that money back. The account had lost a bit of money in the market, so I withdrew the entire $2400 that was left.

There were no capital gains, so my understanding was that the withdrawal was all my contributions of post-tax funds. I shouldn't have been subject to penalty nor taxes.

When I put my 1099-R for the account into TurboTax online, however, it docks my refund about $900. That's over 35% (taxes plus 10% penalty?)

What am I missing here?


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.