Roth IRA Early Withdrawal

[Gary]

I have a client coming in with an early withdrawal from a Roth IRA. I know that only withdrawals that exceed his contribution are taxable and subject to penalty. My question is, what will be the Code on the 1099-B? If his distribution is less than his contribution, how does the IRS know?

Thanks for any help.

[RitaB]

Well...

I have a client coming in with an early withdrawal from a Roth IRA. I know that only withdrawals that exceed his contribution are taxable and subject to penalty. My question is, what will be the Code on the 1099-B? If his distribution is less than his contribution, how does the IRS know?

Thanks for any help.

See pages 13 and 14 for the code explanation. And, don't be surprised if it/they are incorrect.

http://www.irs.gov/pub/irs-pdf/i1099r.pdf

You will have to use Form 8606 to explain what part, if any, is earnings. Maybe Form 5329 makes an appearance there, too.