topic Re: 1099-R Invalid code in Box 7 in Get your taxes done using TurboTax

1099-R Invalid code in Box 7

ckcroatt — Mon, 30 Mar 2020 13:46:39 GMT

My 1099-R has a Box 7 value of "B8" and the IRA/SEP/SIMPLE box is checked:

B – Designated Roth account distribution

8 – Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2019

We pulled back the dollars that were deposited in early 2019 because of income limits. None of the "distributions" that we got back were taxable - it was just a return of our post-tax contributions. There is $0 taxable amount and no capital gains.

Turbo Tax is not letting me submit my filing - it keeps saying that I have invalid codes in Box 7, but that is literally what my 1099-R says. Do I need to contact the payer listed on the form? Is there a way I can get Turbo Tax to accept these values so I can complete my filing?

Re: 1099-R Invalid code in Box 7

ColeenD3 — Mon, 30 Mar 2020 14:36:41 GMT

Yes, contract the administrator. When did you pull back the funds? If the program were to accept the code, you would be taxed on the income.

@ckcroatt

Re: 1099-R Invalid code in Box 7

ckcroatt — Mon, 30 Mar 2020 14:36:26 GMT

We pulled back the funds right away - they were supposed to be turned off at the start of the year, but there must have been some miscommunication between the fund and our financial planner because they weren't.

I did compare our AGI both WITH the 1099-R entered and without - it didn't change, so I don't think Turbo Tax is counting it as taxable income.

Re: 1099-R Invalid code in Box 7

JohnB5677 — Mon, 30 Mar 2020 18:22:49 GMT

You should be able to see it on your 1040.

Line 4a is the distribution
Line 4b is the taxable amount