Roth hardship

[cdavis25]

A participant took a hardship distribution from Roth money. The hardship was just the basis for the Roth deferrals. The participant is not 59.5, so it is a nonqualified distribution. When doing the 1099R, do you still prorate the distribution to find the taxable and nontaxable amount or is the whole amount nontaxable, since it was a hardship and only the basis was taken?

[masteff]

See Page 10 of the 1099-R instructions (which indicates nonqualfied distributions are prorated).

And: http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-on-Designated-Roth-Accounts#25

Since I make designated Roth contributions from after-tax income, can I make tax-free withdrawals from my designated Roth account at any time?

No, the same restrictions on withdrawals that apply to pre-tax elective contributions also apply to designated Roth contributions. If your plan permits distributions from accounts because of hardship, you may choose to receive a hardship distribution from your designated Roth account. The hardship distribution will consist of a pro-rata share of earnings and basis and the earnings portion will be included in gross income unless you have had the designated Roth account for 5 years and are either disabled or over age 59 ½.

[cdavis25]

Tks.