I started this account myself with a cash contribution.
When making distribution withdrawals from this financial institute, it asks two questions:
"Have you met the five-year waiting period?" Y or N
"Which selection describes your distribution?" Premature (under 59 1/2 years old), Premature (with exception), Disability
When making the withdrawals, I chose Y, and then Premature (under 59 1/2), the first time. I then realized that seemed incorrect, since there was no penalty, being that I was withdrawing contributions, and I subsequently chose Premature (with exception), not realizing that contributions to a Roth are not technically considered an exception even though they are not penalized. They chose code T due to this entry I made on the form. Any future coding issues should be resolved since I know which box to choose in the future.
I don't wish to change custodians (you're referring to the financial institute, correct?). It sounds like mailing my return is probably the best way to handle this since I don't have a very good understanding of IRAs regarding rollovers and coding. Unless, would it make sense to file it as-is with the provided 1099-Rs electronically, and then send in an amended return through the mail to adjust the 1099-Rs? That way I can get it filed and in place first (which I need to do to start receiving unemployment). From what I'm seeing when playing with the options within TurboTax, is that using the 1099-Rs as they were sent to me, and answering the questions properly (including saying that yes I've had the account for 5+ years) is not applying any tax or penalty.
