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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.
‎February 23, 2022
5:35 AM