Issue is about reportable income from earnings. Not the 10% penalty.
Roth IRA distribution are considered qualified if "attributable to the individual’s being disabled", subject to the 5 year exclusion period.
So amount should not be included on line 19 of 8606 ("total nonqualified distributions").
But Vanguard doesn't know of the disability, and reported code J on the 1099-R.
And TurboTax includes the amount on line 19 of form 8606.
Am I missing something in Turbo Tax, or do I need to try to get Vanguard to amend the code? I question whether they'll do that, because disability determination isn't exactly the bank's responsibility.
TurboTax handles the penalty exception. That's not my issue.
