1099-R Invalid code in Box 7

Forum|Forum|6 years ago
March 30, 2020
1 reply
3 views

My 1099-R has a Box 7 value of "B8" and the IRA/SEP/SIMPLE box is checked:

B – Designated Roth account distribution

8 – Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2019

We pulled back the dollars that were deposited in early 2019 because of income limits. None of the "distributions" that we got back were taxable - it was just a return of our post-tax contributions. There is $0 taxable amount and no capital gains.

Turbo Tax is not letting me submit my filing - it keeps saying that I have invalid codes in Box 7, but that is literally what my 1099-R says. Do I need to contact the payer listed on the form? Is there a way I can get Turbo Tax to accept these values so I can complete my filing?

ColeenD3

Level 15

Yes, contract the administrator. When did you pull back the funds? If the program were to accept the code, you would be taxed on the income.

@ckcroatt

ckcroattAuthor

Level 2

We pulled back the funds right away - they were supposed to be turned off at the start of the year, but there must have been some miscommunication between the fund and our financial planner because they weren't.

I did compare our AGI both WITH the 1099-R entered and without - it didn't change, so I don't think Turbo Tax is counting it as taxable income.