Reporting Qualified Distributions from Inherited Roth - TT considers them taxable

[Steve-NJ]

I had a small qualified distribution from an Inherited Roth.  The 1099-R box 2b says the taxable amount was not determined and the box 7 distribution code is T.  I read that with the "T", TurboTax considers them unqualified. Even after I answer all of the questions it still considers it taxable.  What am I doing wrong, or what can I enter to have then considered nontaxable (as they should be, and have been when not using TurboTax).  The original owner did meet the 5 year rule and passed in 2012.  Thanks.

[AmyC]

Code T says the issuer does not know if the 5 year holding period was met. Since you know that it was, you can enter zero in box 2b for the taxable amount. 

[dmertz · Accepted solution]

For a code-T Form 1099-R reporting a distribution from an inherited Roth IRA, TurboTax requires that you determine the taxable amount yourself and enter the taxable amount in box 2a of TurboTax's 1099-R form.  If the decedent's first Roth IRA contribution was for some year prior to 2017, the taxable amount of this code-T 2021 Form 1099-R is zero, otherwise the taxable amount is the amount of investment gains included in the distribution under the Roth IRA distribution ordering rules.

[Steve-NJ]

Thank you for clarifying.  Easier to fix than I expected!