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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3184
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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In 2004 I Withdrew approximately $175,000 from my IRA to buy

Customer Question

In 2004 I Withdrew approximately $175,000 from my IRA to buy our house. About a month ago it dawned on me that the money I withdrew was from a Roth IRA, which should not have been reported as taxable income. I had Fidelity Investments take out 20% for income tax and then still had to pay $9,569 more when I filed my tax return. Is there any possible way I can file an amended return and get that money back. I paid IRS approximately $36,000 when I should have paid only around $2,000.
Submitted: 9 months ago.
Category: Tax
Expert:  Barbara replied 9 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Withdrawals made after age 59 and 1/2 are normal retirement withdrawals and are not taxed. You paid tax on that income when you first contributed to the Roth IRA. If the withdrawal is made before age 59 and 1/2 and is only up to the amount that has been contributed to the Roth IRA then no income tax is charged.

Did you receive a 1099-R for the Roth IRA distribution? What code was in Box 7?

If this distribution was incorrectly reported as taxable income you can file an amended return, but you will not receive a refund because the statute of limitations has long since expired.

Please let me know if I can assist you further.

Thank you and best regards,

Barb