I have a question about the 1099 r form. I had a distribution from a beneficiary ROTH IRA.

[rdraheim11]

I am under 59 1/2 yrs old. I did not take any distributions within 1 yr of the original account owners death.  The original account holder did have at least one of the accounts in his ROTH IRA for 20 yrs.  I did take the full distribution within 4 yrs since date of death of account owners from a beneficiary ROTH IRA. I am a non spouse beneficiary. Is it true there will be no tax on it?  Will it be counted on box 7 of the 1040 form as part of the AGI.  They told me they will send me a 1099 r form with code 4 as the distribution code.  Is that the correct distribution code or do I need it fixed? Some places I see it could be a distribution code of Q or T.

[dmertz · Accepted solution]

Since the participant had a Roth IRA before 2015, any distribution that you receive from the inherited Roth IRA as beneficiary is tax free.

It's likely that the IRA custodian will use code T on the Form 1099-R rather than the code Q which would confirm that the participant had a Roth IRA for more than 5 years.  It doesn't matter which of these codes is present in box 7 since all that matters is that you report it as nontaxable on your tax return. TurboTax will treat the distribution as nontaxable when you indicate that the distribution was from an inherited Roth IRA and that at the time of the distribution it had been at least 5 years since the beginning of the year for which the participant first made a Roth IRA contribution.