1099-R Code J

[Yardley CPA]

MFJ spouse withdrew funds from her Roth IRA in the amount of $2,000.  She is 48 years old.  1099-R was coded as J: Early distribution from Roth IRA no known exception.  

There are no exceptions based on the client.  They just needed the funds.  Her basis in the account is $11.369.  I completed Part III of the 8606 as follows:

Is this a taxable event for her?  The ATX program shows the $2,000 distribution on line 4a but treats it as a non-taxable event with line 4b showing zero.  

I appreciate your feedback. 

[Lynn EA USTCP in Louisiana]

Basis, contributions, are deemed to be distributed first. If the distribution exceeds the basis then the overage is taxable. Was the account open at least 5 years ?m

[Yardley CPA]

5 minutes ago, Lynn EA USTCP in Louisiana said:

Basis, contributions, are deemed to be distributed first. If the distribution exceeds the basis then the overage is taxable. Was the account open at least 5 years ?m

Yes...account was opened in 2003.    I wanted to confirm my understanding was correct, that since basis was more than the distribution it was non-taxable even though she is below 59 1/2.   Thank you, Lynn.