topic Re: Roth IRA in Retirement tax questions

Roth IRA

stephan5 — Tue, 10 Feb 2026 10:25:13 GMT

At the age of 64 I made a Roth IRA withdrawal. The 1099-R I received from Fidelity has the taxable income, box 2a, as 0, Box 5 states Roth contribution is equal with distribution, and box 7 is filled with "B" which indicates a Roth distribution.

The IRS wants to tax the distribution saying they can't determine if the distribution is a pension or an annuity.

Having sent a couple explanatory responses I am now going to call them.

Any thoughts on why the IRS is not seeing this as a nontaxable Roth distribution?

Re: Roth IRA

JohnB5677 — Thu, 29 Feb 2024 17:52:07 GMT

Everything you said sounds like it is posted correctly.

Box 7 Code B is Designated Roth account distribution

Did you check the box that says IRA/SEP/SIMPLE

Re: Roth IRA

stephan5 — Thu, 29 Feb 2024 17:56:09 GMT

The IRA/SEP SIMPLE box is blank

Re: Roth IRA

dmertz — Thu, 29 Feb 2024 22:16:51 GMT

This is NOT a distribution from a Roth IRA. It is a distribution from a designated Roth account in an employer plan like a 401(k).

The taxable amount of this distribution is the amount in box 2a of this Form 1099-R, $0.

"The IRS wants to tax the distribution saying they can't determine if the distribution is a pension or an annuity."

It makes no sense that the IRS would question this distribution. The code B and the amount shown in box 2a tells the IRS everything they need to know about this distribution to determine that it is nontaxable income. Apparently whoever at the IRS questioned this distribution is inexperienced or inadequately trained. The type of investment that was held in the designated Roth account is irrelevant to the tax treatment.

Re: Roth IRA

stephan5 — Thu, 29 Feb 2024 21:30:02 GMT

Thank you. I wasn't sure if I was using the correct terminology.

Re: Roth IRA

stephan5 — Fri, 01 Mar 2024 20:27:42 GMT

Is my next step tax court or is there an IRS phone number that will allow me to connect to a person?

Re: Roth IRA

AnnetteB6 — Sat, 02 Mar 2024 15:11:12 GMT

The IRS phone number for individuals is 1-800-829-1040. You may consider going to a local IRS office if there is one near your home to try to get some assistance.

Use the following link for possible resources, scroll to the Telephone and Local Assistance section for phone numbers and links to local offices:

IRS - Let us help you

@stephan5

Re: Roth IRA

stephan5 — Sat, 02 Mar 2024 16:44:43 GMT

Thanks Annette