TurboTax 2021

akanegsberg · ‎February 22, 2022

What is the taxable impact of code Q or T in box 7 of a 1099-R?

PattiF · ‎February 22, 2022

Code Q is a Qualified distribution from a Roth IRA. There is no tax on the amount on a 1099-R with Code Q.

Code T is Roth IRA distribution, exception applies. There is no tax on the amount with a Code T. This indicates a withdrawal that would have been taxable because the 5 year holding period was not met or age 59 1/2 was not reached, but there is an exception to the taxation because of total and permanent disability, inherited Roth IRA or other reasons that are listed in this IRS tax topic article.

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dmertz · ‎February 23, 2022

Code T does not necessarily mean that the distribution is nontaxable. It means that it's nontaxable if at the time of the distribution 5 years had elapsed since January 1 of the year that the participant first made a Roth IRA contribution, otherwise the distribution follows the ordering rules for distributions from a Roth IRA to determine if taxable earnings were distributed. Taxable earnings come out last under the ordering rules.