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My client withdrew funds ($3,600) from a Roth IRA. This was not a total distribution. All of the funds received were a return of his own money. No earnings in the total.
The 1099 shows code J. Looking at the 1040, the distribution amount is showing as taxable. Where/how do I report the non-taxable portion of the distribution? ($3,600)
There doesn't seem to be an area on the 8606 or at the bottom of the 1099 screen.
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You should be able to enter the total Roth IRA basis on the IRA Info Wks.
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Since you said "jokes" as in more than one, here is number two and this is just too much work so I think I will rest now.
Ole and Lars go ice fishin. Ole pulls out his new thermos and Lars says to him, "Ole, whatcha got der?".
Ole says, "Well Lars, dis here's a thermos. It keeps hot tings hot, and it keeps cold tings cold."
After awhile, Lars gets curious and says, "Vell Ole, whatcha got in dat der thermos?"
Ole says, "Vell Lars, I got a popsicle, and two cups a coffee."
Slava Ukraini!
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Thank you. One more thing I forgot....My client withdrew the funds inside the 5-year holding period. This being the case, is the entire withdrawal taxable?
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You can put in and take it out. Only the earnings would be taxed. A bit like family planning.