dmertz
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Retirement tax questions

Even though you only had this Roth IRA for 4 years, it's still possible that you have met the 5-year requirement for qualified distributions.  The 5-year period for qualification begins on January 1 of the year for which you first made a Roth IRA contribution.

 

If the first year for which you made a Roth IRA contribution was 2018, any distribution you received in 2023 after reaching age 60 is a qualified distribution, free of any tax.  For example, if on April 15, 2019 you made a regular Roth IRA contribution for 2018 to establish your first Roth IRA, the 5-year period started on January 1, 2018 and was completed on December 31, 2022.  In that case your Roth IRA would satisfy the 5-year requirement after having been open for less than 4 years.

 

Being age 60 at the time of the distribution the Form 1099-R will typically have code T in box 7.  2023 TurboTax will ask if you had a Roth IRA before 2019, but it's really asking if you first made a Roth IRA contribution for some year prior to 2019.  If your answer is Yes, TurboTax will treat code T the same as code Q for a qualified distribution.

View solution in original post