MN dhawk Posted April 7, 2011 Report Share Posted April 7, 2011 Client has Roth disbursement coded T (Roth IRA Dist. exception applies) on 1099R. The last contributions were in 2003 so the 5 year requirement is easily met. Client is in mid 60s. ATX transfers the distribution to form 8606 line 26 and taxes the excess over basis. There was a Roth to Roth direct rollover that probably caused the code T. How should I deal with this to avoid the IRS letters? Thanks, Dennis Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 7, 2011 Report Share Posted April 7, 2011 OK, you are in Part IV, right? His 'basis' in the Roth is all of it, since he's the proper age and had the ROTH for more than 5 years. So you have the distribution, but there is no 'excess' to be taxed. I think you are just so lost in the trees you can't see the forest. It's that time of year. Quote Link to comment Share on other sites More sharing options...
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