I received roth ira distribution. 1099r shows it c...
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klamerus2
New Member

I received roth ira distribution. 1099r shows it code J but it is qualified because it as all contribution, not earnings. Turbo tax is taxing it. How do I fix this?

 
2 Replies
ColeenD3
Employee Tax Expert

I received roth ira distribution. 1099r shows it code J but it is qualified because it as all contribution, not earnings. Turbo tax is taxing it. How do I fix this?

Code J:

Early distribution from a Roth IRA

Use Code J for a distribution from a Roth IRA when Code Q or Code T does not apply. 

 

Code J indicates that there was an early distribution from a ROTH IRA. The amount may or may not be taxable depending on the amount distributed and the taxpayer's basis in ROTH IRA Contributions. This information must be entered for the software to calculate the taxable amount.

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dmertz
Level 15

I received roth ira distribution. 1099r shows it code J but it is qualified because it as all contribution, not earnings. Turbo tax is taxing it. How do I fix this?

To reach the question in TurboTax that asks for your basis in Roth IRA contributions, click the Continue button on the page that lists the Form 1099-R that you've entered.

 

Also, this is an early distribution, not a qualified distribution, requiring Form 8606 Part III to be included with your tax return to show the calculation of the taxable amount (which will be zero if the distribution was less than your contribution basis).  TurboTax will automatically prepare Form 8606.

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