Roth withdrawal but no 8086

Forum|Forum|2 years ago
March 4, 2024
3 replies
37 views

I took money out of my Roth IRA last year. I opened this Roth IRA before 2003. I am 76 years old. On the 1099-R from Schwab the "taxable amount not determined" box is checked. Also box 7 says "Q." Turbo Tax is not generating a form 8086 for me. I thought this was required whenever you take money out of a Roth. What would be the reason?

DawnC

Employee Tax Expert

It is not needed for a qualified Roth distribution (Box 7 code Q). Form 8606, Nondeductible IRAs, is used to determine the taxable portion (if any) of a distribution from a Roth IRA. It is not needed for a nontaxable/qualified Roth distribution.

We automatically generate and fill out Form 8606 (Nondeductible IRAs) if you reported any of these on your tax return:

Nondeductible contributions made to a traditional IRA
Distributions from a traditional, SEP, or SIMPLE IRA that had nondeductible contributions (excluding rollovers, conversions, recharacterizations, qualified charitable distributions, one-time distribution to fund an HSA, or return of certain contributions)
Conversions from a traditional, SEP, or SIMPLE IRA to a Roth IRA
Distributions from a Roth IRA (other than rollovers, recharacterizations, or a return of certain contributions)

The Q is Qualified Roth distribution and TurboTax will handle this.

[Edited 3/4/24 | 04:55 PM]

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

KV20Author

Level 2

I've followed these instructions several times but I am not getting the same screens. It doesn't ask me #6 (any nondeductible contributions to IRA. ) After I "jump" it asks me what kind of IRA I own, then it asks me if I contributed in 2023. (I didn't) Then it asks me to enter "net regular contributions prior year to 2023." There's only room for a number, there's no "yes or no. " Then some questions asking me if I am converting or if I have excess contributions. Then it ends by telling me that I don't qualify for an IRA deduction. And that's it. I have Turbo Tax Premier.

DawnC

Employee Tax Expert

That is normal. The distribution was a qualified Roth distribution, so Form 8606 is not required. The distribution with code Q is non-taxable. You should see the amount from your 1099-R on line 4a and nothing on 4b (the taxable portion, which is $0).

Form 8606 is used by filers who make nondeductible contributions to an individual retirement account (IRA). The instructions for Form 8606 state: Complete Part III to figure the taxable part, if any, of your 2023 Roth, Roth SEP, or Roth SIMPLE IRA distributions. If you don’t have an amount to enter on line 19, don’t complete Part III; your Roth distribution isn’t taxable. Instead, include your total Roth, Roth SEP, or Roth SIMPLE IRA distribution(s) on 2023 Form 1040, line 4a.

You did not make any contributions, so you don't need to go through the IRA contributions interview in TurboTax. I updated my response from above..

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"