dmertz
Level 15

Retirement tax questions

What you describe is correct and you are not being taxed on the distribution.  Line 4a shows the distribution amount, it does not mean that it is being taxed.  The code Q is causing TurboTax to properly exclude the entire amount from the taxable amount on line 4b.

 

With a code Q distribution, no matter how you respond to the follow-up questions the distribution will not show up on line 4b as taxable income.