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Solved

Roth IRA Distribution Code T

Forum|Forum|2 years ago
December 7, 2023
1 reply
0 views

I'm taking a distribution on my Roth IRA that I first contributed towards about 15 years ago. The Roth IRA is with Schwab now, but I have rolled it over a couple of times from different companies since it's inception. Schwab is indicating they'll put distribution code "T" on the 1099. Since I am over 59 1/2 and it's been greater than 5 years since I first started contributing to the Roth IRA will I be able to override the code T on the 1099 in Turbotax to show it as a "qualified" distribution and not have to pay taxes on it?

Best answer by dmertz

Yes, after you click the Continue button on the page that lists the Forms 1099-R that you have entered, including this Form 1099-R, 2023 TurboTax will ask if you first contributed to a Roth IRA for some year prior to 2019. When you answer Yes to this question, TurboTax will treat code T the same as code Q by including the gross amount on Form 1040 line 4a but excluding it on line 4b. Form 8606 Part III will not be prepared because the distribution is a qualified distribution.

dmertzAnswer

Employee

Yes, after you click the Continue button on the page that lists the Forms 1099-R that you have entered, including this Form 1099-R, 2023 TurboTax will ask if you first contributed to a Roth IRA for some year prior to 2019. When you answer Yes to this question, TurboTax will treat code T the same as code Q by including the gross amount on Form 1040 line 4a but excluding it on line 4b. Form 8606 Part III will not be prepared because the distribution is a qualified distribution.