TurboTax triggers the annuity interview when the distribution code in Box 7 or the payer type suggests the money came from an annuity contract rather than a Roth IRA. Two common triggers:
- Box 7 code is not J or Q
- A Roth IRA distribution normally uses:
- Code J — Early Roth IRA distribution
- Code Q — Qualified Roth IRA distribution
- Code T — Roth distribution, exception applies but not fully determine
- Make sure IRA/SEP/SIMPLE checkbox is checked on the form
If your 1099‑R has a code such as 7, 1, 2, 4, or any annuity‑related code, TurboTax assumes it might be from a non‑IRA annuity and launches the annuity follow‑up questions. This matches the IRS instructions that Form 1099R covers pensions, annuities, IRAs, and insurance contracts. The code decides how it is treated. Here is how you can ensure that TurboTax will recognize this as a Roth.
- Edit the 1099‑R entry
- Make sure the IRA/SEP/SIMPLE box is checked
- Confirm the distribution code matches what is printed
- Ensure you selected Roth IRA when TurboTax asks what type of account it came from
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