How to make a distribution non taxable from a rollover ira

[sjrcpa]

Why would it be nontaxable?

If there's basis in the IRA, the taxable amount is calculated on Form 8606.

[qbteachmt]

You used the phrase "rollover IRA" but that only describes how the funds got there and doesn't tell us which type of account this was distributed from, nor if the taxpayer is eligible for this distribution without tax or penalty. That type of distribution typically is taxable, and without any further details, that would only become nontaxable if you put that gross distribution amount back into another similar tax deferred plan account in the required timeframe, which makes this another rollover. Such as, this distribution from a traditional IRA into another Trad IRA, that continues to shelter it from income taxes. Or, from Roth 401(k) to Roth IRA.