Hello experts,
I'm trying to use Turbo Tax to estimate the tax impact of an in-service Roth distribution I mistakenly made (too late for me to correct) for estimating 2023 taxes. I'm over 59 1/2 (63 years old), however the 401K Roth plan has only been in existence for 3 years. I guessed what should be on my 1099-R and entering it into Turbo Tax since it was a 2023 distribution. Turbo tax is calculating a tax bill as though the whole amount is to be taxed. All the money in the Roth is after tax contributions. Admittedly, I never had a 1099-R before so maybe I guessed wrong on what I put in the 1099-R boxes. I admit that I should have waited 5 years before doing a distribution, but the penalty is not to double tax all the distribution.
In box 7, I put distribution code 7B. Turbo tax treats the whole distribution as though it has never been taxed. I left empty line 2a to indicate none of the distribution put in line 1 is taxable. Also, checked the box "taxable amount not determined", but still Turbo Tax is treating the distribution as though it never had been taxed.
Any help here would be greatly appreciated!
Best,
Dave
