Early Distribution of Roth - How to Figure Penalty?

[zeros]

Husband and wife each took money out of their Roth account to do some improvements. Received (2) 1099R with a distribution code of "J", no known exception. As I never had one of these before, what do I do with the entries on the 1099R? I assume there would not be any taxable amount but maybe a penalty?

[mastertaxguy]

Roth 1099-R code J

1. Classic RTFM issue. OFTB has code descriptions and p. 13-14 and p. 13-4/5.
2 Code J is a distriubtion prior to age 59 1/2.
3. Distributions from roth's are generally deemed to be from their original post non deductible contributions.
4. There are some work sheets to caculate how much is taxable and how much is subject to the 10% penalty.
5. TTB has a 1099 Roadmap guide.
6. Work thorugh it with all the facts you have pertaining to the distribution. It really is not that difficult, but don't forget to bill it.
7. No penalty if all they did was withdraw original contributions.

[ddoshan]

Shouldn't there have been an 8606 or 8606's keeping track of there contributions and now for any withdrawal from.

[DonPriebe]

Shouldn't there have been an 8606 or 8606's keeping track of there contributions

Nope. Contributions to a Roth don't get reported on a 8606 (or on the 1040 itself)

and now for any withdrawal from.

Yep. That's where you show how much of the withdrawal came from contributions [and is not taxable nor subject to a penalty] and how much came from conversions and earnings [which is taxable and subject to penalty]