@Zypher wrote:
They chose code T due to this entry I made on the form.
Entry on what form? The financial institution the issues the 1099-R choose the code based on the iRS rules.
The 1099-R IRS instructions:
https://www.irs.gov/instructions/i1099r
| T—Roth IRA distribution, exception applies. |
Use Code T for a distribution from a Roth IRA if you do not know if the 5-year holding period has been met but:
Note. If any other code, such as 8 or P, applies, use Code J. |
None |
Since you are under age 59 1/2, the owner of the IRA did not die, and you are not disabled, then the code T does not apply and the instructions clearly say that a code J must be used.
Code J says:
| J—Early distribution from a Roth IRA. |
Use Code J for a distribution from a Roth IRA when Code Q or Code T does not apply. But use Code 2 for an IRS levy and Code 5 for a prohibited transaction. |
8 or P |
**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.**
