ROTH IRA early distribution
individual took distribution from RIRA prior to 59.5 that was less than total contributions however she did not report it on her tax return since she did not believe any taxes or penalties were due. IRS has notified her that they want clarification on this, how does she correct the situation?
Permalink Submitted by Alan - IRA critic on Tue, 2019-07-16 18:53
Surprised the IRS did not send her a tax due notice if she did not file an 8606 showing her contribution balance. She needs to file Form 8606 and show her total regular contribution balance on line 22. If she has not kept records, determining what this amount is could be a challenge. She must file an 8606 for all Roth distributions until her Roth is qualified and totally non taxable.