where do I indicate basis - when Roth IRA originated to show satisfaction of the 5 year rule

Forum|Forum|1 year ago
February 15, 2025
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The 1099R is using distribution code J - which indicates an early distribution of a ROTH IRA. However I have satisfied the 5-year rule as the ROTH was established in 2012 and I have not withdrawn more than my contributions (before earnings). No tax or penalty should apply. However, Turbo Tax software doesn't have an area to enter this exception language and therefore, is showing this distribution subject to tax and penalty.

KrisD15

After you entered the 1099-R, did you go through the ENTIRE interview and answer the questions concerning whether you had the Roth for at least 5 years, did you still have an open Roth December 2024, as well as how much you previously contributed to the Roth account?

TurboTax needs answers to all those question to make the final calculation.

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Smiller4jjtAuthor

I thought I had completed the entire interview- there was not a mention of when the Roth was opened so I was not able to indicate that I had satisfied the 5-year rule.
also the distribution amount was not greater than the total amount contributed to the Roth IRA. based on both of these items, there should be no additional tax or penalty associated with this distribution.

I just don’t know how to indicate that through TurboTax.