If you withdraw earnings from a ROTH IRA and the IRA funds have not been held in the account for five years, then the earnings are subject to a penalty and tax. TurboTax may be asking you information about when and how much you contributed and fund balances to determine if any of your withdrawals are subject to a penalty and tax because of the five year rule. Even though the five year rule may not apply to you because of when you last made contributions, the questions in TurboTax may not take that into consideration to err on the side of safety. It seems the code in box 7 may incorrect, but you would have to ask your broker for clarification on that matter.
@form8606
{Edited 3/9/23 at 6:12 PM PST}
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