Note: These instructions are for the person completing the Form 1099-R to distribute, and so TaxAct uses these IRS instructions in the program as a guide to handling the amounts reported on forms containing these codes.
Code Q - Qualified distribution from a Roth IRA Use Code Q for a distribution from a Roth IRA if you know that the participant meets the 5-year holding period and:
The participant has reached age 59 1/2, or
The participant died, or
The participant is disabled.
Code 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 1/2, or
The participant died, or
The participant is disabled.
In the TaxAct program, if Code J or T is used, the checkbox is marked to indicate that the 5-Year Holding Period has NOT been met, and entries have been made for the conversion to a Roth IRA then Form 5329 will compute the additional tax on the distribution.
To indicate the 5-year holding period has not been met:
From within your TaxAct return (Online or Desktop), click on the Federal tab
Click Retirement Plan Income to expand the category, and then click IRA, 401(k), and Pension Plan Distributions (Form 1099-R)
Click Add to create a new copy of the form or click Review to review a form already created
Click Quick Entry
Scroll down to the section Additional Information not reported on Form 1099-R
To enter the information about the Roth conversion:
From within your TaxAct return (Online or Desktop), click on the Federal tab
Click Retirement Plan Income to expand the category and then click Taxpayer [Spouse] Additional taxes on qualified plans (Form 5329)
Click Review next to Early distributions from a retirement plan
Click Continue until you reach the screen with fields for the year in which you converted to a Roth IRA
Enter the amounts from the lines indicated on Form 8606 for the applicable year
Your request has been submitted
You have been successfully added to the TaxAct Do Not Sell list.