I experienced a minor windfall within my Roth IRA in 2020 (Tesla), and decided to put this good luck to work for me today by withdrawing my contributions and paying down a HELOC. I am 51 and understand I cannot tap into the earnings without tax/penalty, but I have always understood that I could access the contributions. I have not contributed to my Roth in 10+ years, but keep good records and was careful to withdraw only what I contributed those many years ago.

So now it's tax time and I have a 1099-R with a Box 7 distribution code of J. When I use this code in my tax program (H&R Block) I am hit with tax and penalty.

I have been trying to figure out if this is a flaw in the tax program or the 1099-R. But after digging more deeply into the distribution codes, I don't see where any of them cover a simple withdrawal of Roth contributions.

The instructions for preparers of 1099-Rs says to use code J for Roth distributions unless codes Q or T apply (and neither applies to withdrawal of contributions). Code J can be modified by adding codes 8 or P, but those apply to excess contributions and earnings, not a simple withdrawal of contributions. I'm stuck.

Any thoughts/help would be much appreciated.