@Cmkayser21 wrote:
On 1099R Goss Distribution is the same amount as Taxable amount, federal tax amount is 10% of Gross amount, line 7 has code 3.
A box 7 code 3 is for a *pension* distribution for an employee on a disability pension and has nothing to do with a Roth IRA.
For a code 3, TurboTax will ask if you are over or under the minimum retirement age that you could have retired at if still working. If under that age then the box 2a (or box 1 if 2a is blank) amount is treated a wages and put on line 1 of the 1040 since a disability pension is a wage replacement. Is over retirement age then it goes on line 4 as a pension.
If you do not know the minimum retirement age then contact the plan administrator.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
