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New Member
posted Apr 9, 2025 3:04:55 PM

I was over 59-1/2 when I withdrew $50,000 from my Roth IRA. All contributions to it were made over 5 years ago. Why is turbo tax including this as taxable income?

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3 Replies
Level 15
Apr 9, 2025 3:26:09 PM

@dwleider go back and read each and every question TT is asking VERY closely.  You may have answered something incorrectly.  What is the code in Box 7 of form 1099-R. 

 

Agree that if the Roth has been open at least five calendar years and you are over 59.5 years old, it is not taxable. 

New Member
Apr 9, 2025 3:35:39 PM

T is the code in box 7. I ended up deleting the 1099R  for the Roth IRA distribution and then re-entered it. I'm pretty certain I entered the same info the second time, but this time Turbo Tax did not treat my ROTH IRA distribution as taxable. 

Level 15
Apr 9, 2025 5:06:15 PM

That "T" code means that while your IRA administrator knows you are over 59.5, it isn't confident the account has been open for 5 years.  this can often occur if you moved the account from one firm to another.  So, how you answer the questions that TT poses, will get you to not taxable.