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ROTH code T / Can I buy a "zero," Vanna?


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Posted

So I have a qualified ROTH distribution that broker doesn't know is qualified and used Code T.  Ok, fair enough.  ATX sends amount to Line 19 of Form 8606.  OK, fair enough, again, as I am apparently the only person on earth who knows it's qualified.  My client sure didn't.  I had to dig thru records. 

So,  I can override and make line 19 blank.  How can I get an actual zero to print there?  I'm thinking IRS will think I ignored the issue if line 19 is blank, but there were no nonqualified distributions, and I want a zero there.

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Posted
34 minutes ago, Abby Normal said:

I can't get you a zero but I have a slightly used 1 you can have.

But seriously, I don't think the IRS will care if it's blank.

Hahahaha, thank you, and Vanna has nothing on you.  If you can't get a zero, I'm in good company.

 

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Posted

I had one of those.  Like you, I knew it was qualified (he is 68 and contributed to the ROTH 100 years ago... well in 1998 anyway)

I know his cost basis, so i put that on line 22 so that there is no taxable.  Now... if the cost basis is less than the distribution, then that won't be a fix.  

of course, the real fix is to get a corrected 1099-R.... but we all know how well that will go...

  • Like 3
Posted
1 hour ago, Hahn1040 said:

I had one of those.  Like you, I knew it was qualified (he is 68 and contributed to the ROTH 100 years ago... well in 1998 anyway)

I know his cost basis, so i put that on line 22 so that there is no taxable.  Now... if the cost basis is less than the distribution, then that won't be a fix.  

of course, the real fix is to get a corrected 1099-R.... but we all know how well that will go...

Yes, I thought of that line 22 fix, but it's not really truthful, even if basis exceeds distribution, since line 19 SHOULD be zero.  But I'll be honest, I am tempted.  There is no chance of a code correction, as that's what Code T is for - account custodians with new accounts.  Too bad it's an option, and they don't have to find out when the taxpayer contributed.  Oh well, that's why we are heroes.

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