dmertz
Level 15

Retirement tax questions

Because the new custodian does not know if the holding period was met, code T is the correct code to be ion this Form 1099-R.

 

As I said above, the IRS will be unaware that you changed the code to Q for entry into TurboTax because this detail is not sent to the IRS unless the Form 1099-R shows federal tax withholding in box 4.