Report Roth IRA withdrawal for school, 2019
March 21, 2020 5:18 PM   Subscribe

My partner took a Roth IRA withdrawal for a qualified educational expense in 2019. Now. How do we report this on our taxes?

The withdrawal is a qualified withdrawal from contributions only for a school that is definitely eligible, so it should be non-taxable. Great.

How do we report this in 2019? I gather that we put it in the 1040 and file a 5329, but beyond that, we are lost. Specifically, what line do we put information on the 1040? Much of what we can find on the internet is outdated.

We are looking at 1040 line 4a and 4b. Is the amount she puts...what? We literally do not understand the instructions. Does she file 5329 or 8606 instead? In addition? We just don't know. Can you help us find a clue?

You are not our tax professional and we'll double-check your advice with a tax pro before proceeding to file, but any help would be awesome.
posted by blnkfrnk to Work & Money (2 answers total)
 
You file Form 5329 and put the amount withdrawn on line 2 (from your 1099-R), and to the left of it is a space to write exception code 08 for qualified education expense. That indicates that you did a qualified education IRA withdrawal. That's it.

Then you enter the same amount on 1040 line 4a and you put zero on line 4b because none of it is taxable. That's it.

Did you get a 1099-R from your IRA custodian? What boxes or codes are on the 1099-R?

Please double-check this advice.
posted by JackFlash at 7:48 PM on March 21


Exactly correct. My tax pro looked it over and was very pleased! Thanks!
posted by blnkfrnk at 4:15 PM on March 22


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