What should I change it to? Form 1099-R (FIDELITY INVESTMENTS): Box 7b distribution code is invalid. A distribution code of 'B' should not be used for IRA distributions.?

[Lisa995]

Use Code B for a distribution from a designated Roth account. But use Code E for a section 415 distribution under EPCRS (see Code E) or Code H for a direct rollover to a Roth IRA.

If its a ROTH IRA then it can be used.

[DoninGA]

Was the distribution from an IRA?  If not, then make sure that the box for IRA/SEP/SIMPLE is not checked on the form.

[dmertz · Accepted solution]

In the follow-up to entering the Form 1099-R, make sure that you indicate that the distribution was NOT from a Roth IRA.  For a code 2B Form 1099-R indicating that the distribution was from a Designated Roth Account in a qualified retirement plan like a 401(k), TurboTax needlessly asks if the distribution was from Roth IRA.  If you answer Yes, which is ALWAYS the incorrect answer for a code 2B Form 1099-R, you'll end up with TurboTax flagging your entry as erroneous.