topic Re: Form 1099-R: Box 7b distribution code'L' is not appropriate in Retirement tax questions

Form 1099-R: Box 7b distribution code'L' is not appropriate

wpaiz2021 — Mon, 08 Mar 2021 19:10:02 GMT

During my run-check of my federal return, TurboTax program came back with a "Check This Entry".

I entered exactly what Box 7 had reported: "7L". I assume the 1st code = "7". And the 2nd code = "L".

Why is TurboTax not accepting this? And what do I need to do to correct this?

Re: Form 1099-R: Box 7b distribution code'L' is not appropriate

ColeenD3 — Mon, 08 Mar 2021 19:51:47 GMT

Double check all your entries. There may be another entry causing the review. I just ran it through with no problem. If the issue persists, delete the form and re-enter. The codes are also probably redundant. Code L is sufficient to indicate the loan.

Re: Form 1099-R: Box 7b distribution code'L' is not appropriate

dmertz — Mon, 08 Mar 2021 21:45:42 GMT

This is a bug in TurboTax's error checking. TurboTax does not permit code L to be combined with code 7 even though it's permissible based on the instructions for Form 1099-R.

As ColeenD3 indicated, a reasonable workaround is to omit the code 7 and select only the code L. Code L has the same meaning and effect with or without the code 7.

Re: Form 1099-R: Box 7b distribution code'L' is not appropriate

wpaiz2021 — Thu, 11 Mar 2021 19:27:37 GMT

Thank you for this response. It makes more sense to me as well to eliminate the code "7" because code "L" says more clearly the "Loans treated as distribution".