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rjfertal
Returning Member

1099-R with Code "T" - Roth IRA Distribution Exception Applies

I did a direct, trustee-to-trustee rollover in June, 2017, of my entire $23K (contributions and earnings) from a designated 401(k) Roth account with my former employer into a Roth IRA with another financial institution, established June 2019. The begin date of the designated 401(k) Roth account was January 1, 2008. In June, 2019 I took a distribution of the rolled in amount ($23K) from the Roth IRA which should be its basis. The 1099-R identifies the distribution as code “T”, (Roth distribution, exception applies).
How do I report this distribution in Turbo tax so the entire $23K is not reported as taxable income?
None of the Qualified Disaster or Hurricane scenarios apply. I’m over 59½.

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1 Reply

1099-R with Code "T" - Roth IRA Distribution Exception Applies

Just enter the 1099-R.

 

A code T is a qualified distribution except that the trustee does not know if the 5 year rule is met.    TurboTax will as if you had the Roth for 5 years and the 2008 date established that so you can answer yes.   Nothing should be taxable.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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