I am getting a Red Flag on my 1099-R Inherited ROTH IRA. (It is a non spousal IRA). When I select the type of account (IRA) it flags it as red(See below)
If I select it as 403B it passes(Just an observation).
Box 2B is checked "taxable amount not determined"
Box 7 Code is "T" and the IRA/SEP/Simple is not checked.
I did withhold state and fed taxes (Not needed, I know).
Any ideas on how to make the red mark go away?
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If IRA is not checked on your 1099-R, uncheck that box. If it's not a 403B (usually retirement account for civil employees), don't check that one either. Can you check 'Other'?
Code T in Box 7 indicates a Roth distribution, exception applies. You should uncheck the box for 'If box 7 code is 2 or 5'.
If you indicated that you inherited this account, and that the Roth account has been open over 5 years in the interview, you're correct that it's not a taxable distribution.
Here's more info on Inherited Retirement Plan Distributions.
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