@agent86 wrote:
The code in box 7 is "T," and the IRA/SEP/SIMPLE box is NOT checked. I did see that the T code was probably causing a problem and I don't know why my broker used it so I will discuss this with them. However, I think the Turbotax questions following 1099-R entry should have resolved the problem.
On another note, I've been using Turbotax for many years while doing IRA/Roth contributions, rollovers, conversions, and distributions. Not once has this software generated a form 8606 so there is no way for me to go back now for the purpose of accurately determining the basis of my several accounts. In retrospect, I should have used a pro.
Code T means that it is a qualified distribution but the 1099-R issuer does not know if the 5 year rule has been met so TurboTax must ask the questions. If you have owned the IRA for more then 5 years then the plan administrator must know that the 5 year rule has been met and the code should have been a "Q" (that means a qualified distribution and the 5 year rule has been met) . Complain to the plan administrator that issued the 1099-R with the wrong code.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
