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.
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.
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:
If you still have questions after reviewing this section, respond back with the box 7 code and a brief description of the distribution.