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Retirement tax questions
A code T 1099-R is reporting a distribution from a Roth IRA that is not subject to early withdrawal penalty but the financial institution issuing the 1099-R does not know if the 5-year holding period to make the distribution a qualified (and therefore entirely tax free) distribution has been met. If the 5-year holding period has been met, the distribution isn't taxable.
‎February 23, 2021
4:51 PM