Roth ira distribution "Taxable Amount Not Determined" on 1099-R. How to I resolve that. Help section implies I may need a Form 8606. Is that right?

[dmertz · Accepted solution]

Enter the Form 1099-R as received.  Click the Continue button on the Your 1099-R Entries page to reach the pages where TurboTax asks the questions necessary to determine if Form 8606 Part III is required, and if so, obtain from you the information needed to complete Part III.

If your distribution was a qualified distribution, made after 5 years after the beginning of the year for which you first made a Roth IRA contribution and after you reached age 59½ or became disabled, your tax return does not need to include Form 8606 Part III.  Otherwise, your tax return must include Form 8606 Part III to calculate the taxable amount of the distribution.