Roth IRA to IRA

[Unregistered]

Client came with 1099R with a code "T" in box "7". Code T is roth distribution. Client will pay tax but no penalty as he is 60 years old.

He told me that he got check from bank (where he had roth IRA), deposited it and then in a week put in IRA (Roth or Traditional - I do not know) at diff bank. Should he pay tax? Does this sound like conversion?

[Matt Sova]

60?

If this was a Roth and he is 60 then no tax or penalty.

[Unregistered]

Roth

If this was a Roth and he is 60 then no tax or penalty.

He’ll be tax, if he didn’t hold the Roth for five years, even if he is 60.
Of course, he can withdraw the principle of the Roth without being tax.

[Unregistered]

What is code "T" in box 7 of 1099R

[S T]

1099R Codes

See the link for all of the codes.http://www.irs.gov/instructions/i109...2.html#d0e1329

But for Code T in Box 7

T—Roth IRA distribution, exception applies. Use Code T for a distribution from a Roth IRA if you do not know if the 5-year holding period has been met but:
The participant has reached age 59 ½, or

The participant died, or

The participant is disabled.

Note: If any other Code, such as 8 or P applies, use Code J. None
*See the Caution for box 7 instructions on page R-9.

Sandy