Withdrawal of conversions (amounts converted from a traditional IRA to a Roth IRA) are subject to a 10% penalty if the conversion was less than 5 years ago AND you are under age 59-1/2.
Withdrawals of earnings are subject to regular income tax if you are under age 59-1/2 or if it has been less than 5 years since you opened a Roth IRA, even if you are over age 59-1/2.
Turbotax doesn't know from the 1099-R, whether any part of the distribution was earnings, conversions or contributions. You have to provide that information.
With a Roth distribution, one of the codes in box 7 must be J, Q or T (in addition to a number code). If the 1099-R does not have a J, Q or T in box 7 you may have been given an incorrect form. If you did not enter the codes correctly, go back and edit them in the program.
Three hours is there error turbo tax I have from firm 1099-R and distribution was 1,000 dollars filled out the form including Distribution code T which was Roth IRA distribution. Am over 75 and was told 30 years withdrawals farm Roth IRA tax free. After 7 redoing turbo tax forms the 1000 remains as taxed. Roth is tax free withdrawal but turbo tax no!! Help is needed. Lawrence
During the entry of the code-T 2023 Form 1099-R, proceed until 2023 TurboTax asks if you had a Roth IRA before 2019, then answer Yes. Answering Yes to this question causes TurboTax to treat code T the same as code Q.