Roth IRA distribution

[Joann]

Good morning all,

How do you handle a code T in box 7 of a 1099R? I never saw this before.

[Pacun]

Good morning all,

How do you handle a code T in box 7 of a 1099R? I never saw this before.

I found this: (It seems that there is no penalty and you should use code 2 maybe)

A distribution that is part of a series of substantially equal periodic payments as described in section 72(q), (t), or (v).

Any other distributions subject to an exception under section 72(q), (t), or (v) that isn't required to be reported using Code 1, 3, or 4.

You should ask your client. If you are able to do so, you will know that number 2 below doesn't apply

Use Code T for a distribution from a Roth IRA if you don't know if the 5-year holding period has been met and the participant:

1.- has reached age 59 1/2

2.- died

3.- is disabled.

If any other code, such as 8 or P applies, use Code J.

[Joann]

Thanks Pacun--I appreciate it!!!

Joann