topic 1099-R Distribution T in Retirement tax questions

1099-R Distribution T

JP-4 — Mon, 10 Mar 2025 13:40:37 GMT

I have received a 1099-R from Fidelity, that uses a distribution code of T (ROTH IRA distribution, exception applies). When I asked them why it wasn't coded as a distribution code Q (Qualified Distribution from a ROTH IRA). The answer was that Fidelity does not determine what is qualified and what is not a qualified distribution. However, the turbotax program does not appear to recognize the "distribution T code, as it does not generate a Form 8606 for this ROTH distribution. How do I handle this?

Re: 1099-R Distribution T

DanaB27 — Mon, 10 Mar 2025 17:28:08 GMT

If you had the Roth IRA for 5 years and indicated this in the Roth follow-up questions in the retirement section then this is a Qualified Distribution and TurboTax doesn't need to fill out Form 8606. It seems you entered this correctly since your return doesn't have Form 8606.

Login to your TurboTax Account
Click on "Search" on the top and type “1099-R”
Click on “Jump to 1099-R” and enter all your 1099-Rs
Click "Continue" on the "Review your 1099-R info" screen after you entered all you Form 1099-R
Answer "Owned Any Roth IRA for Five Years?" screen

Note, if you had the Roth IRA for 5 years then you do not need to enter the net contribution prior to 2024.

Re: 1099-R Distribution T

dmertz — Mon, 10 Mar 2025 15:31:41 GMT

"it does not generate a Form 8606 for this ROTH distribution"

This means that TurboTax is indeed treating it as a nontaxable qualified distribution and you have already told TurboTax that you had a Roth IRA before 2020. Qualified Roth IRA distributions are not to be reported on Form 8606.