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New Member
posted Mar 15, 2024 12:39:43 PM

I have a Roth IRA which the application adds as taxable income when it is tax free. Unable to correct this entry. Looking for help.

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4 Replies
Level 15
Mar 15, 2024 1:00:40 PM

Withdrawal of contributions is never taxable.

Withdrawal of conversions (amounts converted from a traditional IRA to a Roth IRA) are subject to a 10% penalty if the conversion was less than 5 years ago AND you are under age 59-1/2.

Withdrawals of earnings are subject to regular income tax if you are under age 59-1/2 or if it has been less than 5 years since you opened a Roth IRA, even if you are over age 59-1/2. 

 

Turbotax doesn't know from the 1099-R, whether any part of the distribution was earnings, conversions or contributions.  You have to provide that information.

 

With a Roth distribution, one of the codes in box 7 must be J, Q or T (in addition to a number code).  If the 1099-R does not have a J, Q or T in box 7 you may have been given an incorrect form.  If you did not enter the codes correctly, go back and edit them in the program. 

Expert Alumni
Mar 16, 2024 8:31:39 AM

As Opus17 mentioned you will need to provide the information about contributions and conversions in the follow-up questions:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top and type “1099-R” 
  3. Click on “Jump to 1099-R” and enter all your 1099-Rs
  4. Click "Continue" on the "Review your 1099-R info" screen after you entered all you Form 1099-R
  5. Answer "Owned Any Roth IRA for Five Years?" screen
  6. Continue through the questions and make sure you enter the net contributions prior to 2023 on the "Enter Prior Year Roth IRA Contributions" screen 
  7. Make sure you answer the questions about conversion if you made them in the past.

 

@royulrich 

New Member
Sep 28, 2024 10:25:22 PM

Three hours is there error turbo tax I have from firm 1099-R and distribution was 1,000 dollars filled out the form including Distribution code T which was  Roth IRA distribution. Am over 75 and was told 30 years withdrawals farm Roth IRA tax free. After 7 redoing turbo tax forms the 1000 remains as taxed. Roth is tax free withdrawal but turbo tax no!! Help is needed. Lawrence 

Level 15
Sep 29, 2024 6:54:05 AM

During the entry of the code-T 2023 Form 1099-R, proceed until 2023 TurboTax asks if you had a Roth IRA before 2019, then answer Yes.  Answering Yes to this question causes TurboTax to treat code T the same as code Q.