Do I need to report a Roth IRA contribution-only withdrawal when filing my taxes?

You're correct that withdrawing only your contributions from a Roth IRA is tax-free and penalty-free. The IRS considers this a return of your already-taxed money. Even though there's no tax impact, you'll still need to report the withdrawal. Your IRA custodian will send you a Form 1099-R by the end of January showing the distribution. The form will have a distribution code (likely code "J" for early distribution with no known exception, or code "T" for Roth IRA distribution). When you file your taxes, you'll need to report this on Form 8606 (Part III) to document that you're only withdrawing contributions, not earnings. This calculation establishes your tax-free basis. Many tax software programs will walk you through this process by asking questions about your Roth IRA contributions through the years. Keep good records of all your past contributions to make this easier.

I went through this exact situation last year when I needed cash for a medical bill. I was totally confused about whether I'd owe taxes and how to report it. I found this tool called taxr.ai (https://taxr.ai) that really helped me understand what documents I needed and how to handle it on my tax return. The tool analyzed my 1099-R and confirmed I didn't owe taxes on my contribution withdrawal. It also gave me step-by-step instructions for completing Form 8606 correctly. Saved me a ton of stress because I was worried I'd mess something up and get hit with penalties.

Good news! You don't have to pay taxes when withdrawing contributions from your Roth IRA because you've already paid taxes on that money. However, you DO need to report the withdrawal on your tax return using Form 8606 (Nondeductible IRAs). When you make a withdrawal, your IRA custodian will send you a Form 1099-R which shows the total distribution amount. The form won't distinguish between contributions and earnings, so it's your responsibility to track how much you've contributed over the years. The 1099-R will have distribution codes that tell the IRS what type of withdrawal it was. The key is filing Form 8606 correctly to show the IRS that you're only withdrawing contributions, not earnings. This prevents the IRS from mistakenly thinking you owe taxes or penalties on the withdrawal. It won't affect your refund if done correctly, because you're just confirming you're withdrawing already-taxed contributions.

I went through exactly this situation last year! After hours of research and stress, I found taxr.ai (https://taxr.ai) which saved me so much confusion. I uploaded my 1099-R form from my Roth IRA custodian and it immediately identified that I was only withdrawing contributions. The tool walked me through exactly how to report it on my taxes properly and even showed me which boxes on Form 8606 needed to be filled out. The best part was it explained everything in simple language instead of confusing tax jargon. I was worried about triggering an audit by reporting something incorrectly, but this made it super simple.

I wanted to follow up about my experience with taxr.ai. After my initial skepticism, I decided to give it a try since I was planning to withdraw some Roth contributions for a down payment. I'm actually really impressed! The tool found contribution information in my old tax returns that I didn't even realize was there. It laid out exactly how to report my withdrawal on Form 8606 and confirmed I wouldn't owe any taxes. What I particularly liked was how it explained the "ordering rules" for Roth distributions (contributions come out first, then conversions, then earnings). This helped me understand exactly how much I could take out without tax consequences. Definitely worth checking out if you're planning a Roth withdrawal.

Just wanted to update after trying taxr.ai from the recommendation above. I was skeptical but it really did simplify everything! I uploaded my 1099-R and it confirmed I was only taking out contributions. It walked me through exactly what to enter in TurboTax and explained why the 1099-R shows the full distribution amount even though I'm not taxed on contribution withdrawals. Turns out I was overthinking it - the key was just making sure to file Form 8606 to tell the IRS these were contribution withdrawals. My refund stayed exactly the same as it should since these withdrawals aren't taxable. Really glad I found this before making a mistake on my filing!

If you're having trouble getting answers about your Roth IRA withdrawal from the IRS, I feel your pain. I spent HOURS trying to get through to the IRS last year about a similar situation, constantly hitting busy signals or getting disconnected. Eventually I found this service called Claimyr (https://claimyr.com) that actually got me through to an IRS agent in about 15 minutes. There's a demo video showing how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that yes, you need to report the withdrawal via Form 8606 even though it's not taxable, and explained exactly how to fill it out. Having that official confirmation gave me peace of mind that I wasn't going to trigger an audit or something.

If you're having trouble getting clear answers from the IRS about Roth IRA withdrawals (which I definitely did), try Claimyr (https://claimyr.com). I spent DAYS trying to get through to an IRS agent to confirm how to report my Roth withdrawal correctly. Their phone lines were constantly busy with 2+ hour wait times. I was skeptical but tried Claimyr, and they got me connected to an IRS representative in about 15 minutes! The agent walked me through exactly how to report my contribution withdrawal and confirmed I needed Form 8606. You can see how it works here: https://youtu.be/_kiP6q8DX5c. Just having that official confirmation gave me huge peace of mind when filing.

I need to apologize about my comment above. I was completely wrong about Claimyr. After struggling with the IRS busy signals for nearly a week trying to get clarity on my Roth withdrawal reporting, I finally tried it out of desperation. Got connected to an IRS agent in about 20 minutes who confirmed exactly what others have said here - for Roth contribution withdrawals, you need to report it on Form 8606 to show the IRS you're not withdrawing taxable earnings. The agent even emailed me their specific guidance document about Roth withdrawals. Saved me hours of frustration and probably prevented me from making a reporting mistake. Sometimes it's worth admitting when you're wrong!

I need to eat my words about Claimyr. After posting my skeptical comment, I was still struggling to get IRS clarification about a Roth distribution I took earlier this year, so I decided to try it as a last resort. I'm shocked to say it actually worked! After months of trying to get through on my own with no success, I was connected to an IRS agent in about 20 minutes. The agent confirmed exactly what others here have said - that withdrawing contributions requires reporting on Form 8606 but isn't taxable. They also helped me understand how to document my contribution history since I was missing records from a few years. Saved me a ton of stress and probably an expensive call to a CPA. I've already told my brother about it since he's dealing with a similar situation.

One important thing nobody's mentioned yet - make sure you tell your IRA provider specifically that you want to withdraw CONTRIBUTIONS ONLY. Sometimes they'll process it as a regular distribution unless you specify. I learned this the hard way when my provider initially coded my withdrawal incorrectly on the 1099-R.

Just a heads up for everyone - make absolutely sure you've tracked your contributions correctly! I thought I was only withdrawing contributions last year but messed up my math and accidentally took out $400 of earnings too. Since I'm under 59½ and it wasn't a qualified distribution, I got hit with a 10% penalty plus taxes on that portion. Double-check your numbers!

Might be a dumb question, but if I take out Roth contributions now, can I put that same money back in later? Or does it count against my yearly contribution limit if I try to replace it?

random question - but does anyone know if this affects your ability to contribute to a Roth IRA in the same year? like if i take out $2000 in contributions this year, can i still put in the full $7000 for 2025 or would it be reduced?

Make sure you're keeping track of your basis! I made a roth withdrawal years ago and thought I was only taking out contributions but because I didn't have good records, I ended up paying taxes unnecessarily. Keep a spreadsheet with all contribution amounts and dates!!

Great advice from everyone here! Just to add one more tip - if you're planning to take a Roth contribution withdrawal, consider doing it early in the tax year if possible. This gives you more time to organize your paperwork and understand the reporting requirements before tax season hits. Also, don't forget that some employers offer Roth 401(k) options which have different withdrawal rules than Roth IRAs. Make sure you're clear on which type of account you're withdrawing from, as the rules can be quite different. Roth 401(k) withdrawals are subject to pro-rata rules where each withdrawal includes both contributions and earnings proportionally. One last thing - if this is truly an emergency expense, also look into whether you qualify for any penalty-free early distribution exceptions from other retirement accounts (like hardship withdrawals from 401(k)s) before tapping your Roth IRA, since once you take money out of the Roth, you lose that tax-free growth space forever.

I just want to emphasize something that might not be totally clear from the other responses - when you withdraw Roth IRA contributions, your custodian doesn't know whether you're taking out contributions vs earnings. They'll send you a 1099-R showing the full withdrawal amount, and it's up to YOU to prove to the IRS via Form 8606 that it was just contributions. This is why keeping good records is so crucial. I'd recommend before you make the withdrawal, gather up all your old tax returns or contribution confirmations so you know exactly how much you've contributed over the years. That way when you get the 1099-R, you'll have everything you need to file Form 8606 correctly and show the IRS that your $1500 withdrawal was from your contribution basis, not earnings. Also, don't panic when you see the 1099-R - it might look scary because it shows the full distribution amount, but remember that's just for reporting purposes. As long as you file Form 8606 properly, you won't owe any taxes on withdrawing your contributions.

This is such great advice from everyone! As someone who's been contributing to my Roth IRA for about 3 years now, I never really thought about the record-keeping aspect until reading this thread. I've just been assuming my brokerage would track everything for me, but it sounds like that's not the case. One thing I'm curious about - if you've been making monthly automatic contributions rather than lump sum annual contributions, does that make the tracking more complicated? I have like 36 small contributions over the past 3 years rather than 3 big ones. Do you need to list every single transaction on Form 8606, or can you just use the annual totals? Also, @Diego Mendoza, have you checked if your employer has an Employee Assistance Program (EAP)? Sometimes they offer emergency loans or financial counseling that might help you avoid touching your retirement savings altogether. Just a thought before you pull the trigger on the withdrawal!

Thanks everyone for all the detailed advice! This has been incredibly helpful. I had no idea about Form 8606 or that I'd need to track my contribution history so carefully. @Malik Jackson - great suggestion about the EAP! I completely forgot my company offers that. I'm going to check with HR tomorrow before making any withdrawal. You're absolutely right that touching retirement savings should be a last resort. For everyone asking about record keeping - I've been pretty good about saving my annual statements, but now I realize I should create that simple tracking spreadsheet that several of you mentioned. Better to get organized now before I potentially need to make any withdrawals. One follow-up question: if I do end up needing to withdraw the $1500, should I specify to my IRA custodian that it's "contributions only" when I request it, or do they automatically follow the ordering rules (contributions first, then earnings)?