dmertz
Level 15

Retirement tax questions

Code T does not necessarily mean that the distribution is nontaxable.  It means that it's nontaxable if at the time of the distribution 5 years had elapsed since January 1 of the year that the participant first made a Roth IRA contribution, otherwise the distribution follows the ordering rules for distributions from a Roth IRA to determine if taxable earnings were distributed.  Taxable earnings come out last under the ordering rules.