Roth IRA Withdrawls

rblant213

I took a ROTH IRA withdrawal back in 2023 and one in 2024. I had already filed my taxes for 2023 but did not receive the 1099-R form until after I received my refund. Once I tried to amend/add it to my return, it showed I owed money. I was under the assumption a ROTH IRA account is already pre-taxed so why would I have to pay taxes again on it'?

AlexO

rblant213,

That is a great question!

If it was a qualified distribution, it should not have been taxable. For it to be a qualified distribution, it must have been at least 5 years since the first contribution to your Roth account and you must be age 59 1/2.

If it was a nonqualified distribution, any contributions to the account can be withdrawn tax-free. The contributions to your Roth account are known as the "basis". When you reported the Form 1099-R when amending, did you report the basis of your Roth IRA account?

If you filed the amendment with us, I'd recommend logging into your FreeTaxUSA account and contacting support from within your account. When you do so, we will be able to see account-specific information and advise you as to why the distribution was deemed taxable.