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New Member
posted Mar 7, 2025 4:42:58 PM

I’m reporting a substitute 1099-R for a Roth 401(k) excess contribution correction with Codes B and E, per IRS rules, but get an error. Any reasons why? workaround?

I have a Roth 401K excess contribution and earnings to it which were withdrawn and checks were mailed to me this week. In substitute 1099-R enter in box 7a -'B designated Roth account distribution' and in box 7b -'E distributions under EPCRS'

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1 Best answer
Level 15
Mar 7, 2025 7:43:53 PM

The IRS does not permit code E to be combined with code B.

 

You should not be entering any substitute From 1099-R.  The taxable earnings that accompany this return of a Roth 401(k) contribution performed in 2025 are reportable on your 2025 tax return when you receive the actual 2025 Form 1099-R near the end of January 2026.  (If the distribution was made in 2024, contact the 401(k) plan to obtain the missing Form 1099-R.)

2 Replies
Level 15
Mar 7, 2025 7:43:53 PM

The IRS does not permit code E to be combined with code B.

 

You should not be entering any substitute From 1099-R.  The taxable earnings that accompany this return of a Roth 401(k) contribution performed in 2025 are reportable on your 2025 tax return when you receive the actual 2025 Form 1099-R near the end of January 2026.  (If the distribution was made in 2024, contact the 401(k) plan to obtain the missing Form 1099-R.)

New Member
Mar 8, 2025 8:23:17 AM

Yes, I was worried that the earnings my over contribution which was also withdrawn this year will not be taxed this year.  So I really don't need to submit a substitute 1099-R and just wait for next year's (2025) tax filing for the actual 1099-R from my plan administrator issuance of it and have it reported on my 2025 tax returns.  That makes it easier then.  Thanks.