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    Roth IRA Withdrawal

    Customer age (now age 83) & spouse each opened Roth IRA's in 2002. Each had a Roth with 2 different providers.
    Over the years they had contributed a total of $12-k each ($6-k each to each separate Roth).
    Spouse died in 2023. Customer then transferred/rolled over both of spouses balances to his Roth IRA.
    Neither person had taken any distributions until customer took $18-k in 2024 distributions.
    Taxpayer's provider issued the 1099-R showing 2 separate $9-k distributions.
    One is coded "Q". (No Problem) The other $9-k is coded "T" because they say it came from the spousal rollover.
    I'm inclined to believe that because the deceased spouse had $12-k in basis, my customer can recover the $9-k tax free
    per form "8606" part 3 showing $9-k on line 22. Do I have this right? Thanks for comments.
    Last edited by admin; 04-09-2025, 03:41 PM.

    #2
    What am I missing here??. . .a taxable withdrawal from a Roth IRA by an octogenarian??
    Is there possibly more than one code in Box 7 of the Form 1099-R ?

    Comment


      #3
      No code other than "T" in box 7. Don't know if the withdrawal was impacted by the rollover done by the taxpayer.
      I'm aware that death proceeds would be tax free, but since he rolled this over, does this require a 5 year holding period as with a regular IRA.
      Figured he could remove basis tax free in any event.

      Comment


        #4
        Code T simply means that issuer of 1099R does not know if 5 year holding was met. Software should have a place to indicate holding period was met.

        Comment

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