topic Re: Roth IRA Distribution code wrong in Retirement tax questions

Roth IRA Distribution code wrong

cwlutterloh — Tue, 10 Feb 2026 09:27:50 GMT

I have a Roth IRA that I started at Company A roughly 15 years ago, deposited a few thousand to start. I then rolled it over to Company B continued to add money yearly. 7 years ago I rolled it over to Company C and continued to deposit money.

This year I had a large purchase (Rooftop Solar) which I withdrew most of what I contributed over the years. ALL of the gains were left untouched plus some what I contributed over the years.

I received a 1099-R from Company C for the withdraw and the Distribution code was "J" for early withdraw. I called them and said they made a mistake but they said they show a withdraw in excess of what I deposited while the account was with them. They couldn't account for the other 2 companies.

I'm confidant I could show my records of deposits via previous tax returns but I don't know what to do to correct the 1099-R distribution code. I use the code that company C gave me the software marks it as an early withdraw and charge me with a large early withdraw penalty. But I don't want to change the code manually because the form states otherwise.

Re: Roth IRA Distribution code wrong

TomD8 — Fri, 26 Jan 2024 16:34:34 GMT

The IRS has instructions for your situation:

https://www.irs.gov/taxtopics/tc154

Re: Roth IRA Distribution code wrong

dmertz — Fri, 26 Jan 2024 16:40:03 GMT

If you were under age 59½ at the time of the distribution, code J is correct. In that case the taxable amount must be determined on Form 8606 Part III. Enter the Form 1099-R as received. Be sure to click the Continue button on the page that lists the Forms 1099-R that you entered and, when asked, be sure to enter the amount of your Roth IRA contribution basis so that TurboTax has then information necessary to complete Form 8606 properly. The entire gross amount will be included on Form 1040 line 4a but only the taxable amount, if any, will be included on line 4b.

Re: Roth IRA Distribution code wrong

Opus 17 — Fri, 26 Jan 2024 16:42:11 GMT

[edited, I misread the question]

Re: Roth IRA Distribution code wrong

dmertz — Fri, 26 Jan 2024 16:41:11 GMT

@Opus 17 , I think "Company" refers the Roth IRA custodian.