What are the exceptions that apply when a T is reported in box 7

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A T was reported in box 7 on my 1099R Roth money that I received. saying that taxable amount no determined. How do I verified to the IRS that I indeed was over 60 and I had that money for more that 5 years?

TurboTax Online

dmertzAnswer

Level 15

After entering the Form 1099-R, click the Continue button on the Your 1099-R Entries. Answer Yes when asked if you opened a Roth IRA before 2013. That's all you need to do for this income to be treated as nontaxable income. The gross distribution amount will appear on Form 1040 line 15a or Form 1040A line 11a but the entire amount will be excluded from line 15b or 11b.

There is no need for any penalty exception because the code T already indicates to TurboTax that the distribution is exempt from penalty. No penalty for this distribution will appear on Form 1040 line 59.

dmertzAnswer

Level 15

Anonymous

You could get a corrected 1099R from your financial institution. There is also a screen as you go through the interview process that will ask if you had the IRA before a certain date and subsequent questions. You can indicate that you qualify on these screens.

Exceptions are listed below (See the attached screenshot below. Click to enlarge.)