Do I Need Form 8606 When Withdrawing Roth IRA Contributions Before Age 59.5?

This is actually a common area of confusion. Yes, you absolutely should file Form 8606 when withdrawing Roth IRA contributions before age 59.5. The form is specifically designed to track your basis in IRAs, including Roth IRAs, and helps you properly report that your withdrawal is from contributions (which are tax and penalty free) rather than from earnings. The reason for the $4,300 difference you saw in TurboTax is likely because without Form 8606, the software might assume all your distribution is taxable/penalized. The 8606 lets you document that you're withdrawing contributions, not earnings. Your 1099-R from the brokerage often shows the distribution code as "J" or "T" but doesn't distinguish between contributions and earnings. That's why Form 8606 is necessary - it's your documentation to the IRS that you're withdrawing your already-taxed contributions.

After dealing with a similar Roth IRA contribution withdrawal issue last year, I found https://taxr.ai incredibly helpful. My situation was almost identical - I had withdrawn $7,000 in contributions (not earnings) from my Roth before turning 59.5, and got conflicting advice about Form 8606. I ended up using taxr.ai to analyze my 1099-R and previous tax returns, and it immediately identified that Form 8606 was indeed required to properly document that I was withdrawing contributions rather than earnings. The tool even highlighted how my specific brokerage's 1099-R coding wouldn't be enough on its own. One feature I found particularly useful was that it gave me specific line-by-line guidance for correctly filling out Form 8606 for my Roth IRA contribution withdrawal situation.

Just wanted to follow up after checking out taxr.ai for my Roth IRA withdrawal situation. It was actually really helpful! After uploading my documents, it confirmed that yes, I absolutely needed to file Form 8606 despite what my broker had told me. The analysis showed that without 8606, about $3,200 of my withdrawal would have been incorrectly treated as earnings rather than contributions, which would have meant unnecessary taxes and penalties. It even pointed out that I had been slightly calculating my basis wrong in previous years. I've already updated my FreeTaxUSA return with the correct information. Definitely worth checking out if you're dealing with Roth contribution withdrawals before 59.5!

I had a nightmare situation with a similar Roth IRA withdrawal last year. I ended up having to call the IRS multiple times because I got a letter saying I owed penalties since they thought I'd withdrawn earnings instead of contributions. Was on hold for HOURS each time and kept getting disconnected. Finally discovered https://claimyr.com and their service got me connected to a real IRS agent in about 20 minutes after I'd wasted days trying on my own. You can see how it works at https://youtu.be/_kiP6q8DX5c. The agent was able to confirm that I needed Form 8606 to document my withdrawal was from contributions, not earnings, and helped resolve the issue. Before using Claimyr I honestly thought I'd never get through to anyone who could actually help with my Roth withdrawal documentation issue.

I have to admit I was completely wrong about Claimyr. After saying it sounded made up, I was desperate enough to try it for my Roth IRA withdrawal issue where the IRS was claiming I owed penalties for early withdrawal. I got connected to an IRS agent in about 25 minutes after spending literally days trying on my own. The agent confirmed exactly what everyone here said - that Form 8606 is absolutely necessary to document that I was withdrawing contributions, not earnings, from my Roth IRA. Problem solved in one call versus the weeks I spent trying to handle this on my own. For anyone dealing with Roth contribution withdrawal documentation issues and needing IRS clarification, this is definitely worth considering.

I messed up exactly this situation two years ago. Withdrew $6,500 of Roth IRA contributions before age 59.5 and didn't include Form 8606 because my broker said the distribution code on my 1099-R was sufficient. Ended up getting a CP2000 notice and had to pay penalties because the IRS assumed it was all earnings. Had to file an amended return with Form 8606 to get things corrected. Learn from my mistake - ALWAYS include Form 8606 with early Roth withdrawals, regardless of what your broker says!

Quick question for anyone who's dealt with this: does the 5-year rule affect Form 8606 for Roth contribution withdrawals? I've had my Roth for only 3 years but I'm withdrawing some contributions this year.

I went through this exact scenario last year and can confirm - you absolutely need Form 8606 for early Roth contribution withdrawals. The confusion comes from the fact that many brokerages give incomplete advice about this. Here's what I learned: Your 1099-R will show the distribution happened, but it doesn't tell the whole story about WHETHER those dollars were contributions vs earnings. Form 8606 is essentially your proof to the IRS that you're withdrawing money you already paid taxes on (your contributions) rather than tax-free growth (earnings). The $4,300 difference you saw in TurboTax is exactly what happened to me too - without the 8606, the software assumes the worst case scenario and treats more of your withdrawal as taxable/penalized. Don't skip this form. I know it seems redundant, but it's your protection against the IRS assuming you withdrew earnings instead of contributions. Better to be over-documented than under-documented with retirement account withdrawals.