COVID 401K PENALTY FREE WITHDRAW

[raunam01]

Hello- We took advantage of the penalty free withdrawal from my 401k. I entered the info from my 1099R just as it asked. The funds came from 2 different accts. One had the box7 (distribution code) as B2. The other was just 2. In reading the codes it seemed the B2 distribution came from my 401k roth acct. As I do the final smart check it says "A distribution code of B should not be used for IRA distributions.  Have I done something wrong? 

Since the disbursement came from my 401k plan should I check

yes this money came from a Roth IRA acct

       or

No this money didn't come from a Roth IRA acct 

I thought it was a Roth IRA but if there is a difference between 401k Roth IRS's and Roth IRA's perhaps that is what is causing the error

Any thoughts

[dmertz]

Yes, you mistakenly indicated in the follow-up to entering the code B2 Form 1099-R that it was from a Roth IRA.  A Designated Roth Account in a 401(k) is not a Roth IRA.

There is no reason for TurboTax to even ask this question because the code B indicates that the distribution is not from a Roth IRA.  This question serves only to trip up the unwary and has caught many TurboTax users.  The only correct answer to this question under these circumstances is No.