Line 19 is the distribution. Line 22 is the basis. If you take out the full $30,000 line 19 will be $30,000. The total distribution. All the other stuff about basis and taxes are on the other lines.
Any distribution that is non qualified (under 59 1/2 for example) will require Part III. The IRS will not know if it’s taxable or not. You tell them by filling out the form. The basis is your contributions and conversions. These are already after tax so you don’t want to pay tax again. Earnings are taxable if the distribution is non qualified. There’s also the extra 10% if applicable.
See instructions line 19. https://www.irs.gov/instructions/i8606# ... 99ed0e1565 What you are doing is NOT a return of contributions. That would be when you contributed (illegally) and are correcting/removung the contribution only for the same tax year.
What you are doing is a regular early distribution. You will receive a Form 1099-R with code J. Enter this into your tax software and answer all the follow up questions. The program will populate the 8606.
Any distribution that is non qualified (under 59 1/2 for example) will require Part III. The IRS will not know if it’s taxable or not. You tell them by filling out the form. The basis is your contributions and conversions. These are already after tax so you don’t want to pay tax again. Earnings are taxable if the distribution is non qualified. There’s also the extra 10% if applicable.
See instructions line 19. https://www.irs.gov/instructions/i8606# ... 99ed0e1565 What you are doing is NOT a return of contributions. That would be when you contributed (illegally) and are correcting/removung the contribution only for the same tax year.
What you are doing is a regular early distribution. You will receive a Form 1099-R with code J. Enter this into your tax software and answer all the follow up questions. The program will populate the 8606.
Statistics: Posted by Asyouwish — Fri Dec 19, 2025 5:06 am — Replies 1 — Views 221