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Level 2
posted Jun 6, 2019 12:33:23 PM

Why does Turbo Tax list my non-taxable Roth IRA distribution as income in the income categories without telling me that it is not taxable?

I KNOW my Roth distribution is non-taxable because I meet all the requirements -- more than 5 years, over 59 1/2, etc. But I still don't know if I should have entered it in Turbo Tax because it is showing up as income in the income section. It would be helpful if Turbo Tax would provide more guidance in this case, such as: "Only enter a Roth distribution if it is taxable..." or "Enter any Roth distribution and we will tell you if it is taxable or not..." So I'm hesitant to continue with the return until I know if I've entered this Roth IRA distribution properly.

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1 Best answer
Level 13
Jun 6, 2019 12:33:25 PM

Since you are using the desktop version of the software, you should be able to see the Forms at any time (go to View at the top and click on Forms).

Yes, on the Your Income Summary page or the Wages & Income screen, the amount next to "IRA, 401(k), Pension Plans (1099-R)" does include this number - to show at a glance that you entered it, not that it's taxable (I agree that this can be confusing).

However, you should be able at any time to go to the form 1040 where you will see your 1099-R distribution amount as a non-taxable distribution in line 16a. This tells you how TurboTax is really treating the amount.

2 Replies
Level 13
Jun 6, 2019 12:33:25 PM

Since you are using the desktop version of the software, you should be able to see the Forms at any time (go to View at the top and click on Forms).

Yes, on the Your Income Summary page or the Wages & Income screen, the amount next to "IRA, 401(k), Pension Plans (1099-R)" does include this number - to show at a glance that you entered it, not that it's taxable (I agree that this can be confusing).

However, you should be able at any time to go to the form 1040 where you will see your 1099-R distribution amount as a non-taxable distribution in line 16a. This tells you how TurboTax is really treating the amount.

Level 2
Jun 6, 2019 12:33:27 PM

Thanks. 16a had no entry but the Roth distribution was not listed on the 1040. My traditional IRA taxable distribution was properly entered. So TTx is handling it correctly. An aside: TTx often uses the term IRA to refer to either traditional or ROTH IRAs which adds a little confusion.