Roth Distribution 1099R Code - Q

[perogers60]

I have two 1099R's both with a code=Q in box 7. I withdrew the funds during 2021. Both held for more than 20 years. I am over 69 years of age and understand that these are tax free Roth IRA's.

When entered into TurboTax, it has increased my income and amount of taxes owed. Is there something I have entered incorrectly?

[fawagner]

Can't get the ROTH pages to work. Program says I owe a lot of taxes. My broker says this is incorrect. Cannot see Form 5498 and I think that is where the problem is.  Have deleted the broker forms and reloaded. No change ????? Help

[DaveF1006]

It depends on how you answered the questions. 

1. Make sure that the IRA?SEP/SIMPLE box is checked in the 1099R.
2. After you enter the 1099R's, mention that you have met the 5-yr holding period. for the Roth.
3. Finish out the rest of the section.

If you are still having issues, contact Turbo Tax live support so they can look at your screen and guide you further.

@perogers60        @fawagner

[perogers60]

Dave, 

Thank you for taking the time to answer my question.

Looking at the 1099R box7 the IRA/SEP/Simple is not checked on either of the 1099 distributions.

I only have data in box:

1 - Gross Distribution

2b - Taxable amount not determined has an x in the box

7 - Distribution code = Q

[DaveF1006]

Even though the Box isn't checked, check it because it reports a qualified Roth IRA Distribution. It should not be a taxable event if you indicated you met the 5-year holding period requirement. This will appear as a follow-up question as you complete the entire section in reporting your 1099R. Also make sure you didn't indicate you made excess contributions when the section appears.

Also did you make any disaster distributions in prior years or indicate that you did?

@perogers60