My client has a Roth IRA distribution in 2022 with blank taxable amount, the taxable amount not determined box checked, and Code T.  I have reviewed his contributions (all rollovers from his Traditional IRA) and all the rollovers were taxed.  

He has had this Roth IRA less than 5 years.  And I know because of that, there is an issue with earnings being taxable. But there is still sufficient funds in the account to cover his earnings.  

I input zero in the taxable amount, since he has basis, but it does not change the taxable outcome: the entire distribution is still showing as taxable.

Any ideas on why it is still showing as taxable?

 

 

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