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CGCPA
CGCPA, CPA
Category: Tax
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Experience:  over 40 years experience in tax matters
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IF I CASHED IN A ROTH IRA CD,DO I HAVE TO PAY TAXES ON THIS

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IF I CASHED IN A ROTH IRA CD,DO I HAVE TO PAY TAXES ON THIS? the bank sent me a 1099-R FORM TO REPORT TO IRS, THANK YOU

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

 

Withdrawals from a ROTH IRA are not taxable if you meet certain requirements the most common being that the funds have been in the account for at least 5 years and you have attained age 59.5. If you meet these requirements you will need to reflect the withdrawal as income in the left hand IRA column but put a zero in the right hand column. The bank may already be showing this on the 1099-R. If you do not meet those two requirements a portion of the withdrawal may be taxable. If that is the case please let me know and I will be able to help you further.

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