Roth IRA Distributions and 1099R

[cientax]

I have never had anyone take a distribution from a Roth IRA and don't know how to enter on Form 1099R in ATX. There is no check box for Roth IRA on the 1099R in ATX and the distribution code that I have from the income information provided from the IRS states: "Distribution from a Roth IRA in 1st 5 years". This was a total distribution of $8,008 and he is under 59.5 and this was not a conversion. I believe that $8000 was what he contributed. Can anyone help on how to input on return? Thanks.

[Pacun]

From ATX open 1099R, enter $8008 on box 1 and $8 on box 2. You will have a ONE-DOLLAR penalty for early distribution.

[TAXBILLY]

Are you saying you don't have a 1099-R from the plan? The info should be on the 1099-R which would show $8008 in box 1 and $8000 in box 5. Then you would fill out the Roth section of Form 8606 which will bring the $8 taxable amount to 1040, page 1 and a 5329 will be generated.

taxbilly

[cientax]

Are you saying you don't have a 1099-R from the plan? The info should be on the 1099-R which would show $8008 in box 1 and $8000 in box 5. Then you would fill out the Roth section of Form 8606 which will bring the $8 taxable amount to 1040, page 1 and a 5329 will be generated.

taxbilly

My client doesn't have his copy of the 1099 so we got a print out from the IRS to work from and it gives the information stated above and there is nothing in box 5. Since there is not a check box for Roth IRA on the 1099R, do I just not worry about it? Also, when I fill in the 1099R on ATX, it carries the amount of $8000 to 16a and $8 to 16b for pension an annuities. When I fill in the 8608, it carries only the $8 to 15b and nothing in 15a for IRA's. Do I just not fill in the 1099R and only use the 8606? Thanks.

[Pacun]

On 1099R, answer question 7 with a distribution code AND select IRA. DO NOT expect to find a Roth IRA choice.

[kcjenkins]

I agree, there is no Roth choice, because it's only taxable if they don't follow the rules and leave it in for at least 5 years, in which case it's taxable to the extent it's not a return of the contribution.

[Don in Upstate NY]

Roth 1099-R format

There are special Roth codes that will appear in box 7 ...

Code Q - Qualified Roth distribution. Meets both age and holding period.

Code T - Roth distribution that meets age requirement but with unknown holding period.

Code J - Non-qualified Roth distribution - does not meet age requirement

Code J8 - Correction distribution taxable this year

Code JP - Correction distribution taxable prior year

Interesting, distributions from a Roth IRA need NOT have the IRA box checked

(from 1099-R instructions)