Financial Products

Financial Products

Questions about financial product options? Find discussions around a wide variety of financial service products here. Looking for your first debit card or a seasoned saver looking for tips to build your bank account, this is a great place to share and learn.

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Pioneer
Posts: 1
Registered: ‎03-21-2017

roth ira cash out

I cashed out a small Roth IRA.  I have the beginning and ending amounts for the account.

Where do I report this cash out?  Do I have to report the full amount cashed out or only the interest

earned over the few years I had the IRA?

Tax Pro
Posts: 5,725
Registered: ‎02-23-2016

Re: roth ira cash out

[ Edited ]

Hi grannyspear,

 

Welcome to the H&R Block community.

 

You should have received a Form 1099-R reporting the withdrawal of the funds from the Roth account to you.  This is what you will need to complete your tax return.  If you withdrew the funds early this year then the distribution will be reported on your 2017 tax return.

 

Only the earnings on a Roth distribution are taxable.  You'll need to fill out part III of Form 8606 in order for your taxable income to be correctly calculated.  You can find the questions for Form 8606 in the adjustments & deductions section of the online software.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)

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Pioneer
Posts: 1
Registered: ‎03-22-2017

Re: roth ira cash out

Thanks for the reply but I'm still having trouble finding how to complete this information in the online process.  It lets me look at the form 8606 but not fill it out?  I did not receive a 1099 but have a form the bank sent showing the early withdrawal of the Roth IRA and the dividend and penalty for the year.  The IRA only earned $106.36 for the years I had it. 

Are there penalties for withdrawing before age 70?  I am only 59.....  Thanks for any help.