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@DMarkM1 @VolvoGirl
I do not understand why Code J is the correct entry for Box 7 given the following:
First, on page 29 of Pub 590-B after the paragraphs "What Is a Roth IRA?" and "Are Distributions Taxable?", it reads...
What Are Qualified Distributions?
A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements.
- It is made after the 5-year period beginning with the first tax year for which a contribution was made to a Roth IRA set up for your benefit, and
- The payment or distribution is:
a. Made on or after the date you reach age 59-1/2,
b. Made because you are disabled (defined earlier),
c. Made to a beneficiary or to your estate after your death, or
d. One that meets the requirements listed under First Home under Exceptions in Chapter 1 (up to a $10,000 lifetime limit).
Second, my current and only Roth IRA custodian opened my Roth IRA in 2004 with my one and only contribution. Two months before purchasing my first home, I sent my custodian's account manager an email using his secure email system instructing him to liquidate my Roth IRA for the specific purpose of buying a first home. The next day at my request, he and I reviewed the requirements listed under First Home under Exceptions in Chapter 1 and agreed that I satisfied all of the requirements. We would discuss my satisfying the requirements listed under First Home under Exceptions in Chapter 1 on at least two occasions between the time I purchased the house and his issuance of the 1099-R.
Third, on page 20 of Pub 590-B under the heading Letter Codes, it reads: J - Early distribution from a Roth IRA, no known exception (in most cases, under age 59½).
Can someone explain how J could be the right code for Box 7 given the fact that I made a qualified distribution (Ref.: Pub 590-B, page 29) with exceptions (Ref.: Pub 590-B, page) and my custodian's representative acknowledged my compliance with the above referenced requirements prior to the issuance of the distribution check?
Thank you, in advance, for helping me understand this.
JWK in CVA
