The Form 1099-R reports the gross amount distributed from the Roth IRA. Because the Roth IRA custodian has no way to know whether any distribution consists of contribution basis, conversion basis or earnings, box 2b of the Form 1099-R will have a blank box 2a and box 2b Taxable amount not determined marked. Because the distribution to you will not be a qualified distribution because you are under age 59½, the taxable and nontaxable amounts are determined on Form 8606 Part III which TurboTax will prepare automatically when you enter the code-J Form 1099-R and answer the follow-up questions to tell or confirm to TurboTax your basis in contributions and conversions. If the amount distributed is less than your basis in Roth IRA contributions, the result on Form 8606 Part III will be that the distribution is entirely nontaxable.
