Question

What are the general reporting requirements for Roth IRA distributions, conversions, or recharacterizations?

Answer

Refer to Form 1099-R, Form 5498, and Form 8606 instructions, and IRS Publications 590-A and 590-B for exact reporting requirements. In addition, IRS Notices 98-50 and 1998-39 I.R.B. provide additional information about Roth IRA distributions, contributions, and recharacterizations.

In general, from the 2022 Form 1099-R instructions:

• For distributions from a Roth IRA, report the gross distribution in box 1 but generally leave box 2a blank. Mark the Taxable amount not determined checkbox in 2b. Use code J, T, or Q as appropriate in box 7. It is not necessary to enter X in the IRA/SEP/SIMPLE checkbox.
• For distributions of excess Roth IRA contributions, report the gross distribution in box 1 and only the earnings in box 2a. Enter code 8 or P as appropriate in box 7. Enter X in the IRA/SEP/SIMPLE checkbox.
• For IRA conversions to a Roth IRA, report the total amount converted in box 1 and box 2a. For a Roth conversion, use code 2 in box 7 if the participant is under age 59 1/2, or code 7 if the participant is at least 59 1/2. Do not use code J. Also, enter X in the IRA/SEP/SIMPLE checkbox in box 7.
• For a prior-year IRA recharacterization, enter the fair market value of the amount recharacterized in box 1, 0 (zero) in box 2a, and Code R in box 7. It is not necessary to enter X in the IRA/SEP/SIMPLE checkbox.
• For a current-year IRA recharacterization, enter the fair market value of the amount recharacterized in box 1, 0 (zero) in box 2a, and Code N in box 7. It is not necessary to enter X in the IRA/SEP/SIMPLE checkbox.

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