1099-R distribution code B.

What the IRS says code B is

In Table 1, Guide to Distribution Codes, code B is "Designated Roth account distribution." The IRS says to use code B for a distribution from a designated Roth account, but to use code E for a section 415 distribution under EPCRS and code H for a direct rollover to a Roth IRA. In the box 7a instructions, "for all other distributions from a designated Roth account, use code B in box 7a, unless code E applies."

Code B is the one code that is nearly always paired. Table 1 lists 1, 2, 4, 7, 8, G, L, M, P and U as valid companions. The partner code carries the story: 7 and B for a distribution at 59½ or older, 1 and B or 2 and B for an early distribution, and 4 and B on death.

Designated Roth account versus Roth IRA

A designated Roth account is inside an employer plan, and its codes differ from a Roth IRA. A Roth IRA distribution uses Q, T or J. A designated Roth account distribution uses B plus the age code. A direct rollover from a designated Roth account to a Roth IRA uses H alone, and a direct rollover from one designated Roth account to another uses G and B.

The Form 1099-R instructions note that for a direct rollover from a designated Roth account to a Roth IRA the amount rolled over goes in box 1 and box 2a is zero.

Early distributions on Form 5329

For an early distribution from a designated Roth account, the Form 5329 instructions say to include on line 1 the amount of the distribution that you must include in income, which is found in box 2a of your Form 1099-R. If you have ever made an in-plan Roth rollover, you may also need to include a recapture amount on line 1. Part I explains that the 10% additional tax applies to the part included in income, so a distribution that is entirely basis can show no additional tax.

Use the 1 or 2 beside the B to see whether the payer already knows an exception applies, as described on the code 1 and code 2 pages.

Worked example

Omar, age 47, takes $10,000 from his Roth 401(k) account at work. The form shows codes 1 and B with $10,000 in box 1. Box 2a shows the portion the plan reports as included in income, and Omar enters that amount on Form 5329 line 1. The 10% additional tax applies to that included amount unless an exception applies.

Where this code sits in the full table

This page covers one row of the IRS guide. The full 1099-R distribution codes lookup lets you search every code, and the neighbors of code B are worth a look: 1, 7, G, Q, 2, 8, J, T.

Sources

Retrieved November 1, 2026.

• IRS, Instructions for Forms 1099-R and 5498 (2026): Table 1, Guide to Distribution Codes, and the box 7a, box 2a and Specific Instructions text on code B.
• IRS, Instructions for Form 5329 (2025): Part I, additional tax on early distributions, the exception list (01 to 23) and Roth IRA distribution rules. This is the tax year 2025 edition, the latest read; the 2026 edition is published later.
• IRS, Instructions for Form 1040 (2025): Where IRA, pension and rollover amounts are reported.

Form 1099-R changes for 2026: box 7 becomes box 7a, and the IRS adds boxes 7b, 7c and 7d. On forms for earlier years the code is in box 7.