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Additional Tax on ROTH IRA Distribution
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4 weeks ago
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My client withdrew his ROTH IRA for $1,000 in 2023. The first year of designated Roth contribution was 2020. The Form 1099-R has a distribution code 7 for early distribution of Roth IRA.
I understand the early withdrawal penalty of 10%. However, in Schdule 2 - Additional, Taxes, Part II - Other Taxes, Line 8 - Additional tax on IRA or tax favored account, Proseries puts in $6,500.
Can somebody please help me why such withdrawal imposes a $6,500 taxes? Appreciate any responses on this matter.
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