I would like to withdraw my contributions only from Roth IRA. I was told by ETRADE that they will send a 1099 to IRS and I need to pay tax/penalty unless I tell the IRS that I'm withdrawing my contributions only. Does anyone know what forms I need to file with tax so that I don't have to pay tax and penalty (I'm under 59 and not under Disability). Thanks so much for your help.
2007-11-13 08:18:43 · 9 answers · asked by Anilchachan 1 in Business & Finance ➔ Taxes ➔ United States
All withdrawals from a Roth are tax free.
You can withdraw your contributions and avoid the 10% if it has been 5 years since you made the contribution. Otherwise, if it's been less the 5 years you will be subject to the 10% penalty.
Etrade will 1099 you. You just need to include the distribution in your tax return on forms 8606 AND 5329. If you meet the 5 year rule, no tax or penalty will calculate on your return, but you will still need to include the distribution.
Read the article below, it will tell you everything you need to know.
2007-11-13 09:40:03 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You do not pay tax on withdrawals of contributions from Roth IRAs.
If the contribution was of funds from a traditional IRA that was being converted to a Roth IRA, or you first established a Roth IRA within the last 5 fives, there pay be a 10% penalty.
The form is to determine the penalty or show that there is no penalty is Form 5329 (PDF), Additional Taxes on Other Qualified Plans (including IRA's), and Other Tax-Favored Accounts
2007-11-13 08:30:09 · answer #2 · answered by StephenWeinstein 7 · 1⤊ 0⤋
This Site Might Help You.
RE:
ROTH IRA Withdrawal- I need to withdraw my contribution only -- I'm not yet 59. Will I've to pay tax on this?
I would like to withdraw my contributions only from Roth IRA. I was told by ETRADE that they will send a 1099 to IRS and I need to pay tax/penalty unless I tell the IRS that I'm withdrawing my contributions only. Does anyone know what forms I need to file with tax so that I don't have to...
2015-08-18 06:12:55 · answer #3 · answered by ? 1 · 0⤊ 0⤋
Etrade Roth Ira
2016-10-03 03:50:38 · answer #4 · answered by ? 4 · 0⤊ 0⤋
ROTH IRAs can have contributions withdrawn if you are paying for school and a new home (I think, though that might be the traditional one). The easiest thing to do is to contact the banking center that you have your IRA in and find out what penalities or taxes will have to be paid.
And if you want my advise, you are better off leaving it than doing anything with eTrade. My parents lost a lot of their retirement money messing around with that stuff.
2007-11-13 08:27:58 · answer #5 · answered by quatrapiller 6 · 0⤊ 0⤋
You can take a withdrawal of your original principal after is has been in the account for at least 5 years for it to be tax and penalty free. Otherwise, it is subject to tax and penalties.
2016-03-20 05:26:23 · answer #6 · answered by Anonymous · 0⤊ 0⤋
1
2017-02-17 19:27:34 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You declare your exemption from the tax when you file your 1040. The exemptions are on form 5329, but these are just for the 10% early withdrawal penalty, not the tax due.
2007-11-13 08:28:22 · answer #8 · answered by rob b 3 · 0⤊ 0⤋
Form 8606.
2007-11-13 08:55:08 · answer #9 · answered by Wayne Z 7 · 0⤊ 0⤋
oh yeah
2007-11-13 08:21:22 · answer #10 · answered by Anonymous · 0⤊ 4⤋