Roth Disbursement to 59.5 year old NOT taxable

[legal]

When I entered the Code J on a ROTH/IRA distribution, it came up as taxable on this program.  The guy at Edward Jones was adamant that it was NOT taxable because the client has been putting in the required $6500 per year since 2009 and he was "just taking it out."  I can't find anything regarding Code J and it not being used for a First Time Home Buyer situation.  He actually used the funds for a new truck and was delighted with the purchase.  Now he is not delighted with the Tax hit!  Am I missing something here?  

[qbteachmt]

"The guy at Edward Jones was adamant that it was NOT taxable because the client has been putting in the required $6500 per year since 2009 and he was "just taking it out." "

Well, obviously, that person doesn't know anything about the rules. If he did, he would state it Properly, not so generically. It's hard to state if he means reference to the ordering rules, the 5 year rule, both? Sheesh.

"I can't find anything regarding Code J and it not being used for a First Time Home Buyer situation. He actually used the funds for a new truck and was delighted with the purchase. Now he is not delighted with the Tax hit! Am I missing something here?"

I like the articles meant for the Taxpayer, wince they are not tax-geek-speak. Try this one.

https://www.investopedia.com/understanding-non-qualified-roth-ira-distributions-4770842

Then write it up, send it to the ED Jones guy, and mention you welcome referrals.

[qbteachmt]

Oh; what is "required" as applied to Roth amounts? Sheesh.

[qbteachmt]

For ProConnect, here's your Help article:

https://proconnect.intuit.com/community/individual/help/entering-form-1099-r-in-an-individual-return...

Basis will matter.

[sjrcpa]

 You need to enter the basis in the ROTH IRA.

[qbteachmt · Accepted solution]

@legal 

Please, come back and let us know what you figured out they meant or had wrong. This is a peer community and this type of puzzle is something we all learn from.

[legal]

Thank you all so much.  I finally got Edward Jones to get me the basis for the past few years and it settled the whole matter.  NO tax involved.  It's choosing the correct forms and the Where Do I Enter helped with all of your immediate responses.  Now to tackle the next two biggies on my plate that keep me up at night!

Many thanks!