1099R BOX 7

[alfredgray1012]

I have a ROTH IRA with INVESCO which I have had for more than 5 years. I am under the age of 59 1/2 and I am fully disabled and collecting SSA disability benefits.  I requested INVESCO to distribute funds from my account but they claim they can only code the distribution as a code J on my 1099R from them.  It is my understanding from the IRS instructions for 1099R and 5498 that my situation is a code Q for a qualified distribution for a participate under the age of 59 1/2 with a 5 year holding period requirement met and is disabled. What are my options? Is there action I can take to get INVESCO to properly code my 1099R or is the something that I will have to do after they issue the incorrect 1099R?

Thank you in advance

[RobertB4444]

What INVESCO will do is on them.  What you can do is tell the TurboTax system that you are disabled and that you met the holding period.  It should remove the earnings from taxability and the principal was already not taxable.

@alfredgray1012 

[dmertz]

As RobertB4444 indicated, financial institutions generally will not get involved with determining whether your meet the definition of being disabled for this purpose.

TurboTax does not provide the ability to indicate that you meet the disabled criteria for qualified Roth IRA distributions.  It only allows disability as an exception to an early-distribution penalty.  It seems to me that, since the disability qualification will require explanation to the IRS, to accommodate TurboTax and to satisfy the IRS with an explanation it would make sense to file a substitute Form 1099-R (Form 4852) using code Q instead of code J and where you can provide explanation for treating the distribution as a qualified distribution.

[alfredgray1012]

Thank you for your reply. Is there a way to generate a Form 4852 in turbotax to allow electronic filing or must the form be downloaded and mailed with my printed return?

[SusanY1]

Form 4852 isn't supported for e-file in TurboTax.  When using this form, the tax return must be printed, signed and filed by mail.