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artdeckco
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Backdoor ROTH IRA changing code J to T and

I have been receiving SSDI because a permanent disability preventing me from further work (MS) for about 10 years. Please assume I meet the IRS definition of "disabled". I did a backdoor Roth IRA conversion 3 years ago and paid income taxes on the full amount converted from a traditional IRA. I am now 58 years old. Last year I took a small withdrawal from my Roth IRA.

 

I believe that I meet an exception for the 10% penalty for early withdrawal. My 1099 – R, in box 7 is marked "J". Would it be appropriate to put a "T"? A few years back I recall using a form to report an incorrect Code.

 

But abm I required to pay taxes again on the full amount that I withdrew because I did the backdoor Roth conversion only 3 years ago? 

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1 Reply

Backdoor ROTH IRA changing code J to T and

When you tell TurboTax your basis in conversions from a Trad IRA (important), you won't be taxed.

 

@artdeckco 

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