Question

1099-R Issue with Roth rollover

Forum|Forum|2 years ago
February 2, 2024
1 reply
0 views

I rolled my 401K Roth into a IRA Roth account and took a distribution in 2023. One of the 1099-R forms indicates early Roth withdrawal even thought I've had the Roth for 10+ years and over 67. What from do I need to complete to ensure the Roth distribution is not taxable? Currently the 1099-R has Code J in box 7 creating a taxable distributon. Using TT Deluxe and cannot get this resolved.

3

3Dprinter

I am having a similar problem. I moved my Roth from TDA to Fidelity less than 5 years ago, so I am showing code T, which means that Fidelity knows I'm 59-1/2+ but not that I've held the Roth for ... decades. TurboTax shows it as taxable. It's a big distribution. Maybe someone's answer can kill both birds with one stone.

J

JulieS

Yes, the code in box 7 of your 1099-R form is a description of the type of retirement distribution you have.

If box 7 of your 1099-R form shows code 7, the distribution will be shown as a normal, not early, distribution.

If your box 7 shows a different code, as it will with Roth accounts, you need to answer some follow-up questions to show whether the distribution is taxable, nontaxable, qualified, early, normal or an exception applies.

To resolve this, review the box 7 code and the follow-up questions:

Open your return.
Select Federal, then Wages & Income.
Scroll down to IRA, 401(k), Pension Plan Withdrawals (1099-R), under Retirement Plans and Social Security, select Start or Revisit to the right.
Answer Yes to Did you get a 1099-R in 2023?
Select Edit to the right of the 1099-R form in question.
Review what's entered in TurboTax, even if you imported the information.
Answer the rest of the questions in the section.
When you get back to your 1099-R summary, select Continue and you will get at least two more questions, one of which will be Owned Any Roth IRA for Five Years?
Keep going until you are returned to the Income summary.