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Reporting Roth distribution for first home purchase

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  • DMFA
    replied
    https://www.irs.gov/instructions/i5329/ch02.html#d0e415

    Distributions from Roth IRAs.

    If you received an early distribution from your Roth IRAs, include on line 1 the part of the distribution that you must include in your income. You will find this amount on line 25 of your 2016 Form 8606. You will also need to include on line 1 the following amounts.
    A qualified first-time homebuyer distribution from line 20 of your 2016 Form 8606. Also include this amount on line 2 and enter exception number 09.

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  • anesres16
    started a topic Reporting Roth distribution for first home purchase

    Reporting Roth distribution for first home purchase

    Hello, I am seeking advice regarding reporting my Roth distribution. My wife and I purchased our first home in May 2016 for 142k. We put 20% down and part of that 20% was a $6500 withdraw from my Roth IRA with the understanding that this would be a qualified distribution and tax free. When preparing my taxes using Tax Act, I entered my 1099-R from Vanguard and taxed me $1,793.00. I then go through the process to fill out 5329 and the tax has not changed at all. How do I correct this so that I do not pay taxes on a qualified distribution?

     

    IRS Source identifying my distribution as being qualified:

    https://www.irs.gov/publications/p590b/ch02.html

    Thanks,
    Cole
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