over 5 years. Fidelity doesnt issue any 1099r with a code Q. The online TT does not classify it as qualified even though it was held over 5 years. HELP?

[dmertz]

I assume that this form is not reporting a distribution from an inherited IRA.  After continuing from the page that lists the Forms 1099-R that you have entered, 2025 TurboTax will ask if you had a Roth IRA before 2021.  When you answer Yes, TurboTax will treat code T the same as code Q.  This nontaxable income will then be included on Form 1040 line 4a but will e excluded from taxable income on line 4b.

[pambaxley]

I did that. The issue is that TT doesnt transfer the information to the NJ state return. So NJ is taxing the Roth distribution when it is qualified under the tax code.

[dmertz]

Perhaps the information on this similar thread will help with NJ:

https://ttlc.intuit.com/community/taxes/discussion/nj-taxation-of-roth-ira-distribution-of-principal...

[pambaxley]

Unfortunately the online version of TT offers no remedy for this situation. I am purchasing a new computer which runs Windows 11. I will then download the desktop version. Good luck to anyone else with this problem! TT admits that this is an issue. It would have cost me over $1500 in NJ taxes. People should be made aware of this error.