Are Roth IRA distributions taxable?
Roth IRA distributions may be partly taxable. Form 1099-R, box 7 codes J, Q and T identify a Roth IRA and determine the tax treatment. Code Q means the requirements for tax free distributions are met. This distribution is not taxable. Codes J and T are early withdrawals. The earnings are taxable. J means the 5-year holding period is met but you’re under age 59 1/2. A 10% penalty applies. Code T means an exception applies so there is no penalty.