Do I need more information from a client that has a Form 1099-R with a code J in box 7 with no other information?

Forum|Forum|4 years ago
April 4, 2022
3 replies
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What does an amount in box 14 of Form W-2 labeled "Retirement" mean? Is this a contribution to a Roth 401(k) and would/could it be the basis for a early distribution on the Form 1099-R with code J in box 7?

ProSeries Professional

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Just-Lisa-Now-

Intuit Community Champion

ROTH contributions are shown on box 12 with a code AA or BB. That one in Box 14 is probably some type of employer plan, the client isnt deferring or contributing their own money into it.

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S

Small townAuthor

Level 3

How do I find the basis of a early distribution on a Form 1099-R with a code J in box 7 with no other information? Do I need to ask the client for more information?

Just-Lisa-Now-

Intuit Community Champion

yes, the client needs to pull up their bank records for that ROTH account and see what contributions were made and when.

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qbteachmt

Level 15

The 1099-R will have a box checkmarked for the type of retirement account this was distributed from. And look at the issuer name on the 1099-R, to see if that is the same as the employer plan account manager.

Only your client can tell you if they participate in Roth 401(k), 401(k), both. Example: it is possible your taxpayer contributes post-tax deductions to Roth 401(k) and the employer puts the match into the 401(k), because they are not allowed to put that into the Roth 401(k).

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T

taxes96786

Level 8

Might find your answer in 1040 IRS instructions

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