how do I pay a penalty for early Roth IRA withdrawal

jwyrick001 Member Newcomer
edited January 15 in Retirement Income

I withdrew $1,300 from my Roth IRA before the 5 year time limit had passed. Is there an IRS form I need to turn in for the penalty. If so, what is the form number and where do I obtain a copy.



  • KFine3325
    KFine3325 FreeTaxUSA Agent

    You will receive a 1099-R from the company who issued the distribution from your Roth IRA & you will enter that when preparing your tax return. If it was an early withdrawal from a Roth IRA, Box 7 of your 1099-R should have a code "J" indicating it was an early withdrawal.

    Once that is entered, the software will automatically calculate the 10% early withdrawal penalty. If you had tax withheld to cover that penalty when you took the distribution, that amount will be credited against the penalty on your return as long as it's reported on your 1099-R.