Fidelity 1099-R wrong code box 7-Roth

"Unknown if participant has owned the Roth for at least 5 years, but he/she is either: • At least 59 ½ • Deceased • Disabled"

There is nothing Wrong with T. It is simply a flag for "doesn't need to pay a penalty, but might need to pay taxes."

"There are certain situations in which the 5-year rule for Roth IRAs can be ignored. You may take tax-free distributions from your Roth IRA at any time, at any age, and from any source (contributions, conversions or earnings) for any one of the following reasons:

• Making a down payment on your first house (withdrawal amount capped at $10,000)
• Paying for higher education for yourself, your spouse, your children or your grandchildren (withdrawal amount capped at $10,000)
• Paying for health insurance premiums
• If you become unemployed
• Paying for medical expenses that exceed 10% of your adjusted gross income (AGI)"

"and rolled it to a bank."

You need to know the type of Account. Bank is the financial institution. Not "rolled" or transferred to Bank. Get the 5498, or ask about the Account. Just like "rolled to Fidelity" doesn't tell you Distributed, Converted, or Transferred.

You don't change the code. The issuers uses the code for what they know, not what the client has in the rest of their financial picture nor what they did with the money. That part is your due diligence.

"The last woman shows a T and they withheld Federal and State taxes. She's 83. Fidelity won't correct the 1099s sticking me with the problem."

That would be a Distribution, unless it was "made up" in the deposit as Rolled Over gross.

I took my first Roth distribution this year and noticed TurboTax taxed the entire distribution. Same problem, "T" code assigned by Fidelity even though they have records that this Roth IRA existed with them in 2007 and I am well over 59.5. They refuse to issue corrected 1099 with "Q" code. I spoke to IRS  and agent suggested filing with "Q" and have notes ready if return is flagged at some point.

I could understand Fidelity issuing T code if they didn't have the info needed to issue Q. But, to knowingly issue the incorrect code is inexcusable in my opinion. They told me I'd need to contact (hire) a tax professional to provide advice.

After 50 years with Fidelity, I am looking around for a new home for my investments and those I oversee for others.