Code T is for Roth IRA distributions and the exception applies or to indicate that the penalty will not apply (i.e. you are over age 59 1/2 and have held the Roth IRA for over five years).
Per the Form 1099-R Instructions:
T—Roth IRA distribution, exception applies. Use Code T for a distribution from a Roth IRA if you do not know if the 5-year holding period has been met but: • The participant has reached age 591/2, • The participant died, or • The participant is disabled. Note. If any other code, such as 8 or P, applies, use Code J.
Click here for the instructions for Form 10999-R. The distribution codes are on page 17.
It is possible that some or all of the distribution is taxable. Be sure to click the Continue button on the Your 1099-R Entries page and answer all the follow-up questions to allow TurboTax to calculate the taxable amount of this distribution.
Indicate that you opened your Roth IRA more than 4 years prior to the beginning of the year in which you received the Roth IRA distribution. TurboTax asks this question after you click the Continue button on the Your 1099-R Entries page.
Make sure all of your entries are correct and that all follow-up questions have been answered.
If the problem persists, contact your Plan Administrator to confirm that the Form 1099-R is coded correctly. It may be that your Form 1099-R has been miscoded.
Code P is for excess contributions, which would not apply in your situation.
Code N is for a recharacterized IRA, which would not apply in your situation.
Code G is for a rollover to another qualified plan, which would not apply in your situation.
You can also click here to contact Turbo Tax for assistance.
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