1099-R Box 7

Hello,

I have entered information for several 1099-R forms that my wife received for 2021. When TurboTax runs the smart check the following error message is displayed.

“Form 1099-R (xxxxxxx Pensions): Box 7b distribution code ‘G’ is not appropriate based on the other code ‘2’ entered in box 7a. Please correct or remove this code.”

The 2G is what is on the 1099-R form. Should I leave it as is and click “Done”? If I do that, will it create any problems. I don’t need the IRS knocking on my door.

Thanks for any clarification.

732

Expert Alumni

Feb 26, 2022 5:29:19 PM

Code 2 is Early Distribution with exceptions and Code G is indicating a rollover. TurboTax should accept the Code as 2G in boxes 7a and 7b. If you do not get it fixed, I am not sure that you will be able to e-file your return.

My suggestion would be to go back to where you entered the 1099-R:

Go to the Income and Expense section and go to IRA, 401(k), Pension Plan Withdrawals (1099-R)
Click on Edit/Add and delete the 1099-R by clicking on the trash can next to the 1099-R.
Click on Add Another 1099-R and re-enter the 1099-R. Hopefully, that will fix the problem. Make sure that you enter 2 in the first Box 7 and G in the second Box 7.

If for some reason this does not fix the problem, my suggestion would be to just enter the Code G in the first Box 7. There is no tax consequence and the Code G is the reason for no tax.

Returning Member

Feb 26, 2022 5:39:48 PM

I have entered it several times and keep getting the same result.

I was wondering if I could just enter 'G'. I'll try that. Thanks!

Level 15

Feb 26, 2022 5:43:01 PM

Just enter the G since this was a roll over.

Returning Member

Feb 26, 2022 5:48:25 PM

Entering 'G' only works. I do not receive any error messages.

Thanks!

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1099-R Box 7