topic Re: 1099R in Retirement tax questions

1099R

dcrtax — Mon, 23 Feb 2026 14:32:29 GMT

I have a 1099-R for an IRA account that was converted to a Roth IRA. It was a direct rollover. On turbo tax, I have the same amount entered on line 1 and 2a and the box check total distribution on line 2b. I am use the code "N" for line 7 as indicated on the 1099-R. The amount should be taxable, but turbo tax is not recognizing the amount as taxable. thank you

Re: 1099R

dmertz — Sun, 19 Mar 2023 20:35:38 GMT

Code N is for a recharacterization, not a Roth conversion. A recharacterization is not taxable as income, but might have resulted in an excess Roth IRA contribution that is subject to a 10% excess contribution penalty depending on your MAGI and filing status.

A code-N Form 1099-R is required to have a zero in box 2a because the transaction is always nontaxable. TurboTax knows that a code-N distribution is nontaxable and will properly ignore anything you put in box 2a.

Re: 1099R

dcrtax — Sun, 19 Mar 2023 20:36:01 GMT

Thank you. Yes, it was conversion from Trad IRA to Roth IRA. I didn't make-up the code. That's is what is on the 1099-R. Perhaps it is a mistake. I will reach-out to broker/firm.

Re: 1099R

dmertz — Sun, 19 Mar 2023 20:42:50 GMT

Sorry, I reread your question and revised my reply. Your IRA custodian processed a recharacterization, not a Roth conversion.