dmertz
Level 15

Retirement tax questions

Then yes, entering the $6,000 Roth IRA contribution that you made for 2020 and entering the code J Form 2020 1099-R reporting the $6,000.05 distribution will result TurboTax preparing Form 8606 Part III to show that the distribution is not taxable.

 

Note that this does not necessarily mean that your refund or balance due will remain unchanged by the combination of these two transactions.  If you are married and your spouse made a retirement contribution for 2020 that would otherwise be eligible for a Retirement Savings Contributions Credit, your Roth IRA distribution can reduce your spouse's eligibility for the credit.  But if you are unmarried or your spouse did not otherwise qualify for this tax credit, the taxable result upon entering these two transactions should be the same as if you entered neither of these transactions.