Question

ROTH 1099-R Distributions in a Trust Return (Form 1041)?

Forum|Forum|5 years ago
April 1, 2021
1 reply
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I am using the "TurboTax Business Windows Software" and I am trying to figure out how to enter a 1099-R from a ROTH IRA, which has tax free distributions, in a Trust Return (Form 1041).

The Trust has a series of ROTH IRA that it must take distributions on and distribute it to the beneficiaries. Under the "Income Tab", I can enter a 1099-INT, 1099-DIV, and "Other income or loss" but they are all taxable income where distributions from a ROTH IRA is not taxable. Where is the 1099-R for a ROTH IRA located in the "TurboTax Business Windows Software Step-By-Step" questions?

TurboTax Business Windows

A

Anonymous_

No text available

C

csimAuthor

Unfortunately that does not not help since the money is coming from a ROTH IRA and none of the distribution is taxable. It appears that anything entered in the "Other Income" box MUST BE TAXABLE. I am looking for a "Non-Taxable Other Income" dialog box similar to the "Other Income" dialog box where the Trust can report receiving and distributing non taxed money like for a ROTH IRA or a Federal Tax Free Mutual Fund.

D

DianeW777

I am having the same issue. My Roth 1099-R box 7 has code Q and the IRA/SEP/SIMPLE box is not checked.

My traditional IRA 1099-R has code 4 and the IRA/SEP/SIMPLE box is checked.

I have not been able to find how to enter the non-taxable Roth 1099-R distribution into the Turbo Tax 1041 business software. Any help from Turbo Tax would be nice. Their live support doesn't support this Business Software. They referred me to a tax professional.

It depends. It sounds like that would be corpus and not income since it's a nontaxable distribution. It would not be included as income on the Form 1041 or the personal returns of the beneficiaries. The only income on Form 1041 is taxable income.

@qualifyme

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