I had started a Betterment account in 2017 and made several deposits but after a few months, decided to withdraw majority of the balance leaving a few hundred $ and the earnings. I forgot entirely to report this in my tax filing until this year when i received notice from the IRS that i owe taxes from that event. I provided the 1099 for those two years regarding the account but they are requesting more information. They are asking I fill out form 8606 part 3 which is for non-qualified distributions.
Does a non-qualified distribution mean that my distribution is tax free, as this was a Roth IRA?
What should i do to prove that it should've been a tax free withdraw?
Submitted October 07, 2019 at 09:40PM by All_Hail_CC https://ift.tt/30VAa3R
