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Form 1099-R w/distribution code B1 and IRA/SEP/SIMPLE checked. Turbotax error message - A, B, F, H, L shouldn't be used for IRA distributions. Can't finish. What to do?

 
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dmertz
Level 15

Form 1099-R w/distribution code B1 and IRA/SEP/SIMPLE checked. Turbotax error message - A, B, F, H, L shouldn't be used for IRA distributions. Can't finish. What to do?

A Form 1099-R is not permitted to have a code B in box 7 and have the IRA/SEP/SIMPLE box marked.  The code B indicates that the distribution is not from an IRA.  Codes B and 1 together indicate that the distribution is an early distribution from a designated Roth account in an employer-provided retirement plan like a 401(k), not from an IRA.

 

If the Form 1099-R that you received from the payer actually has codes B and 1 in box 7 and the IRA/SEP/SIMPLE box marked, contact the payer to obtain a corrected form.

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