I've perm disabled, in 2017 I took Dist from my ROTH, some were coded as a disability dist. and some as premature Dist, I have 1099's for each, how do I report?

[MichaelDC]

What is the actual Box 7 code?

[MichaelDC]

There are other possible solutions. Let me know here if you need help.

[thestockbroker22]

one is J "early, no known exemption" the other is T "exception applies"

[MichaelDC · Accepted solution]

First, you need to be sure that the basis for the Roth account has been entered.  Then, if the distribution is still taxable, you will be given a screen to enter any possible exceptions to the early distribution penalty, including withdrawal due to disability. If 3-Disability doesn't work, try "Exception Applies".

Please feel free to post any additional details or questions in the comment section. 

You may find these steps helpful to report the basis of the Roth:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

• This opens a box where you can type in “Roth ira” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

• The search results will give you an option to “Jump to Roth ira”

• Click on the blue “Jump to Roth ira” link

This will bring you to a screen with check boxes to indicate what types of account you had in 2017.  Be sure that Roth IRA is checked.  Click Continue. 

If Traditional IRA is checked or if you have a spouse that had either type of account, the next questions will not pertain to your Roth IRA.  Continue through this section until you are asked whether you made any contributions to your Roth IRA for 2017.  This is the beginning of the section where you will enter details about your Roth IRA, including the basis.

Continue answering the questions according to your situation.  On the screen where you see Let Us Track Your Roth IRA Basis, click Yes. 

Then, on the screen titled Enter Prior Year Roth IRA Contributions, this is asking for your total contributions for years prior to 2016 (basis).  If your basis exceeds your distribution, then the distribution will not be taxable. 

Finish the rest of the follow-up questions about your Roth IRA.

[thestockbroker22]

The ROTH info is all done, I've had it for 12+ years, and all dist are tax exempt, so am I able to lump all dist for 2017 as Disability and if so how do I tell IRS why the discrepancy from the info reported to them by broker

[MichaelDC]

Can you check your Form 8606? After entering the Form 1099-R and answering the immediate follow-up questions, click the Continue button on the Your 1099-R Entries page and answer the additional follow-up questions.  One of the questions will ask you how much you have in net Roth IRA contributions for years prior to 2016.  TurboTax will include on Form 8606 Part III the amount that you enter here, reducing the amount of your Roth IRA distribution that is subject to tax and penalty.

[thestockbroker22]

OK. I'll check, but I have NO contributions only Distributions