Why wont turboxtax accept that my 1099-R box 7 says B2. Says it cant start with B but it does... confused

[bmbaffoe13]

I pulled out of my roth IRA retirement account in 2020 from the cares act covid relief and wanted to disperse the amount I took out over the next 3 years. I put in 1099-R exactly as written but it wont accept that my 1099-r on box seven says B2 when it really does...

[MarilynG1]

Per @dmertz:

"Try entering a B in Box 7, then mark the box that says "I have more than one value in box 7" below the first code selection box and enter the second code, code 2.

TurboTax software does not allow you to designate your 1099-R information as a designated Roth account.  It only assumes that it is a Roth IRA.  Therefore, it shows at B2 code in box 7 as an invalid code.

In the questions that follow entering the code B2 Form 1099-R details, you must answer No when asked if the distribution was from a Roth IRA.  It's a trick question since the code B already indicates that the distribution was from a designated Roth account in a qualified retirement plan, not a distribution from a Roth IRA."

[dmertz]

@bmbaffoe13 , this distribution was not from a Roth IRA.  It was from a designated Roth account in an employer plan like a 401(k).  After selecting code B in one of TurboTax's box-7 selections and code 2 in the other, TurboTax unnecessarily asks if the distribution was from a Roth IRA.  When you mistakenly answer Yes, TurboTax complains.  The only correct answer to this question posed by TurboTax is No.  TurboTax Product Quality that TurboTax presenting this trap for the unwary is not a problem in TurboTax and instead blames the user for not understanding that this type of Roth account is not a Roth IRA.