topic 401k was designated Roth. I entered B2 on my 1099-R form. It asks if this is a Roth IRA, I answered no but it looks like it taxes me again. Am I being double taxed? in Retirement tax questions

401k was designated Roth. I entered B2 on my 1099-R form. It asks if this is a Roth IRA, I answered no but it looks like it taxes me again. Am I being double taxed?

elated111 — Sat, 28 Feb 2026 20:36:47 GMT

401k funds designated roth but not roth IRA. If I say it is not from a Roth IRA, am I being double taxed?

Re: 401k was designated Roth. I entered B2 on my 1099-R form. It asks if this is a Roth IRA, I an...

DavidD66 — Sun, 01 Mar 2026 05:06:27 GMT

No, you're not being "double taxed". Code B indicates "Designated Roth account distribution". Code 2 indicates "Early distribution (except Roth), exception applies. In this case, "Roth" refers to a Roth IRA, not a designated Roth account. So the combination indicates that you took an early distribution from a designated Roth account, but an exception applies; therefore, your distribution in not subject to penalty. It's a Designated Roth Account distribution, so it is not taxable, exception or not, since it is funded with after-tax money.

Re: 401k was designated Roth. I entered B2 on my 1099-R form. It asks if this is a Roth IRA, I an...

dmertz — Sun, 01 Mar 2026 14:57:52 GMT

" It's a Designated Roth Account distribution, so it is not taxable, exception or not, since it is funded with after-tax money."

Unless investment losses had decreased the value below the basis in the designated Roth account, the distribution is partially taxable, with the taxable amount shown in box 2a. Because this distribution was eligible for rollover, a minimum of 20% of the taxable amount was required to be withheld for taxes, but this does not represent the actual amount by which this distribution increases your tax liability. The actual increase in your tax liability caused by the taxable portion of this distribution being added to your AGI is not determined until you prepare your tax return. The amount in box 4 of the Form 1099-R is credited on line 25b of Form 1040 to be applied against your total tax liaiblity.

Re: 401k was designated Roth. I entered B2 on my 1099-R form. It asks if this is a Roth IRA, I an...

mancillaj — Wed, 01 Apr 2026 22:06:35 GMT