| ROTH IRA Contribution Withdrawal |
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Infobahn
First Time Poster
Cash: $ 0.25
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Joined: 29 Mar 2022
Location: LAX
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| ROTH IRA Contribution Withdrawal |
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I have a Roth IRA account. I have not contributed to this account in the past six years. I want to take out some money from this account to meed urgent needs. I understand that my contribution amounts are not subject to withdrawal and penalties considering the fact these were made more than 5 years ago. Unfortunately, I do not have my 1099C for those years. My question is if I withdraw my contributions from this Roth account, what paperwork I will have to file at the time of filing taxes so no penalties are triggered? I asked my online broker to provide me a statement of my contributions to this account but the response I received that they do not keep record for more than 7 years. I find it strange? My question is what paperwork I will have to file with the IRS that this distribution was of contributions only and when the contributions were made?
Any help is appreciated.
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Tue Mar 29, 2022 9:00 pm |
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sj01
New Poster
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Joined: 06 Apr 2022
Location: NYC
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you don't need past years 1099-R form. Whichever year you take the distribution that year's 1099-R form you have to disclose it in your tax return. Your broker will issue 1099-R form for that year.
Ex: by 2015 you contributed $10K, you stopped contributing for the next 5 years. That money grows to $20K. You decided to withdraw $10K in 2021, your broker will issue 1099-R for the year 2021 and it will have details about your distribution. disclose that in your 2021 tax return.
You won't incur any penalties since it is 5 years old account and you are only withdrawing your contribution amount.
Plus even if you missed disclosing 1099-R, IRS fraud convictions are exceedingly rare, so as long as your missing 1099-R was the result of careless record-keeping or general absent-mindedness. However, an investigation is possible if the IRS asserts that you hid your 1099-R as part of an effort to under-report your income.
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Thu Apr 07, 2022 1:30 am |
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