1099-R Box 5 exceeds Box 1

Forum|Forum|5 years ago
January 2, 2021
3 replies
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I have Roth 401(k), and Form 1099-R is showing Box 5 exceeding Box 1. What does this mean? Box 2a is blank.

taxlady28

Level 10

2A is the amount that you owe taxes on and that should be blank for a ROTH. There are many things that can be included in Box 5. What they included in your personal Box 5 is something that your financial institution needs to explain to you.

macuser_22

Alumni - Champ

What year are you doing - 2019 or 2020? 2020 1099-R's have not even been sent out yet - do you have your 1099-R? What code is in box 7?

For a designated Roth (401(k) Roth) box 5 will be the amount of your contributions that are included in the box 1 amount so it is not possible to include more than the total of box 1. If box 5 is actually more then box 1 then the 1099-R is incorrect and must be corrected by the issuer.

In most circumstances a 401(k) Roth will not have a blank box 2a - again what is the box 7 code?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

InugasukiAuthor

Level 4

Box 7 code is B8. It was for 2019.

I did contact the "payor" about the form, but they are saying they don't show a negative amount for Box 2a.

macuser_22

Alumni - Champ

@Inugasuki wrote:

Box 7 code is B8. It was for 2019.

I did contact the "payor" about the form, but they are saying they don't show a negative amount for Box 2a.

Box 2a can never be negative.

Code B8 indicates a corrective distribution from an excess contribution. Box 2a should have the excess contribution and earnings distributed less any designated Roth contributions, so box 2a could be zero or blank. Box 5 should only contain the amount of basis (your contributions) being returned in box 1. Perhaps they mistakenly entered ALL of your past Designated Roth contributions in aggregate rather than nothing or just the amount of contributions that are included in the box 1 amount. In any event box 5 (part of box 1) can never be more then the whole of box 1.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

taxlady28

Level 10

https://www.irs.gov/pub/irs-pdf/f1099r.pdf
Box 5. Generally, this shows the employee’s investment in the
contract (after-tax contributions), if any, recovered tax free this year;
the portion that’s your basis in a designated Roth account; the part of
premiums paid on commercial annuities or insurance contracts
recovered tax free; the nontaxable part of a charitable gift annuity; or
the investment in a life insurance contract reportable under section
6050Y. This box doesn’t show any IRA contributions. If the amount
shown is your basis in a designated Roth account, the year you first
made contributions to that account may be entered in box 11.