Skip to main content
June 5, 2019
Solved

There is a J in box 7, distrubtion was taken after 591/2 and the roth ira was opened in 2006 is that right? or should it be a differant code?

  • June 5, 2019
  • 1 reply
  • 0 views
No text available
Best answer by dmertz

Unless this is for a return of contribution and the code J is accompanied by code 8 or code P, code J is wrong if the distribution was made after your reached age 59½.  The correct code for a regular distribution would be Q, but some Roth IRA custodians don't bother to track the year that you opened the account and use code T instead.

If the distribution is less than your net basis in Roth IRA contributions and conversions, you can report the Form 1099-R as is.  Be sure to click the Continue button on the Your 1099-R Entries page and enter your net basis in Roth IRA contributions and conversions.  If any amount of a regular distribution entered this way remains as taxable, obtain a corrected Form 1099-R from the payer.  If they refuse, you'll need to enter a substitute Form 1099-R showing code Q instead of code J and provide explanation.  Filing a substitute Form 1099-R (Form 4852) precludes you from e-filing.  If this is instead a code J8 or JP Form 1099-R, enter the taxable amount as eligible for an Other Reason exception to the early-distribution penalty.  (Being over at 59½ at the time of the distribution is a valid Other Reason.)

Be sure to contact the payer and make sure that they have your correct birthdate so that future distributions are reported with the correct code.

1 reply

dmertzAnswer
Employee
June 5, 2019

Unless this is for a return of contribution and the code J is accompanied by code 8 or code P, code J is wrong if the distribution was made after your reached age 59½.  The correct code for a regular distribution would be Q, but some Roth IRA custodians don't bother to track the year that you opened the account and use code T instead.

If the distribution is less than your net basis in Roth IRA contributions and conversions, you can report the Form 1099-R as is.  Be sure to click the Continue button on the Your 1099-R Entries page and enter your net basis in Roth IRA contributions and conversions.  If any amount of a regular distribution entered this way remains as taxable, obtain a corrected Form 1099-R from the payer.  If they refuse, you'll need to enter a substitute Form 1099-R showing code Q instead of code J and provide explanation.  Filing a substitute Form 1099-R (Form 4852) precludes you from e-filing.  If this is instead a code J8 or JP Form 1099-R, enter the taxable amount as eligible for an Other Reason exception to the early-distribution penalty.  (Being over at 59½ at the time of the distribution is a valid Other Reason.)

Be sure to contact the payer and make sure that they have your correct birthdate so that future distributions are reported with the correct code.