How do I report a Form 1099-R with distribution code R?
If your Form 1099-R has distribution code R, you'd only enter a 2026 Form 1099-R with distribution code R on your 2025 tax return.
If you have a 2025 Form 1099-R with distribution code R you'd report it on your 2024 tax return.
If you didn't already include the recharacterization shown on your 1099-R on your 2024 tax return, you might need to amend your 2024 tax return because this 1099-R is reporting a recharacterization of a contribution you made in 2024.
For example, you contribute $5,000 to a Roth IRA in 2025. In January 2026 you realize you were eligible to contribute $3,000 to a traditional IRA based on your income and the IRA contribution limits for 2025. You decide to recharacterize $3,000 of your 2025 Roth IRA contributions to a traditional IRA. This allows you to take a $3,000 IRA deduction on your 2025 tax return.
You won't receive a Form 1099-R in 2026, but you should expect a Form 1099-R with code R reporting your $3,000 recharacterization in February of 2027. The Form 1099-R with code R doesn't need to be reported on your 2025 tax return. You can enter it, but it will not change your IRA deduction for the year. You'll need to enter the amount recharacterized for 2025 on the IRA Recharacterizations screen in Common Deductions and Credits section.
If you have a 2025 Form 1099-R with distribution code R you'd report it on your 2024 tax return.
If you didn't already include the recharacterization shown on your 1099-R on your 2024 tax return, you might need to amend your 2024 tax return because this 1099-R is reporting a recharacterization of a contribution you made in 2024.
For example, you contribute $5,000 to a Roth IRA in 2025. In January 2026 you realize you were eligible to contribute $3,000 to a traditional IRA based on your income and the IRA contribution limits for 2025. You decide to recharacterize $3,000 of your 2025 Roth IRA contributions to a traditional IRA. This allows you to take a $3,000 IRA deduction on your 2025 tax return.
You won't receive a Form 1099-R in 2026, but you should expect a Form 1099-R with code R reporting your $3,000 recharacterization in February of 2027. The Form 1099-R with code R doesn't need to be reported on your 2025 tax return. You can enter it, but it will not change your IRA deduction for the year. You'll need to enter the amount recharacterized for 2025 on the IRA Recharacterizations screen in Common Deductions and Credits section.
