I was over 59-1/2 when I withdrew $50,000 from my Roth IRA. All contributions to it were made over 5 years ago. Why is turbo tax including this as taxable income?

Forum|Forum|11 months ago
April 9, 2025
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NCPERSON1

@dwleider go back and read each and every question TT is asking VERY closely. You may have answered something incorrectly. What is the code in Box 7 of form 1099-R.

Agree that if the Roth has been open at least five calendar years and you are over 59.5 years old, it is not taxable.

dwleiderAuthor

T is the code in box 7. I ended up deleting the 1099R for the Roth IRA distribution and then re-entered it. I'm pretty certain I entered the same info the second time, but this time Turbo Tax did not treat my ROTH IRA distribution as taxable.

NCPERSON1

That "T" code means that while your IRA administrator knows you are over 59.5, it isn't confident the account has been open for 5 years. this can often occur if you moved the account from one firm to another. So, how you answer the questions that TT poses, will get you to not taxable.