U.S. · Form 1099-R box 7a
1099-R code R.
Code R versus code N, and what the rest of the form should say.
Code R means a prior-year IRA contribution was recharacterized. The IRS tells issuers to use it for a contribution made for 2025 and recharacterized in 2026 to another type of IRA, by trustee-to-trustee transfer or with the same trustee. A recharacterization of a 2026 contribution made in 2026 gets code N. Either way, box 2a is zero and no income tax is withheld.
Look it up
Result
Reporting a recharacterization on Form 1099-R
| Item | What the IRS instructions say |
|---|---|
| Code R (box 7a) | For a recharacterization of an IRA contribution made for 2025 and recharacterized in 2026 to another type of IRA, by a trustee-to-trustee transfer or with the same trustee. |
| Code N (box 7a) | For a recharacterization of an IRA contribution made for 2026 and recharacterized in 2026. Same transfer methods as code R. |
| Other codes alongside it | Table 1 lists “None” as the allowable combinations for both code R and code N, so they stand alone on the form. |
| Box 1 gross distribution | The fair market value of the amount recharacterized. The instructions list recharacterized IRA contributions among the items that belong in box 1. |
| Box 2a taxable amount | Enter -0- (zero) for an IRA recharacterization. |
| Box 7b IRA/SEP/SIMPLE checkbox | Do not check it for an IRA recharacterization. |
| Box 4 withholding | An IRA recharacterization is not subject to income tax withholding. |
| Why a prior-year contribution can still be recharacterized | The instructions note that a participant may recharacterize a prior-year contribution when the IRS provides tax relief by postponing the tax filing due date, for example because of a federally declared disaster. |
Why R and N are separate codes
The only difference between code R and code N is which year the contribution was made for. The instructions in the 2026 edition say code R covers a contribution made for 2025 that was recharacterized in 2026, and code N covers a contribution made for 2026 that was recharacterized in 2026. The year printed on the form is the year the recharacterization happened,.
What the other boxes should look like
A correctly prepared form shows the fair market value moved in box 1, zero in box 2a, no federal income tax in box 4 and no X in the box 7b IRA/SEP/SIMPLE checkbox. The IRS points issuers to Notice 2000-30 for how to report. If your form shows a taxable amount in box 2a for a recharacterization, or shows a different code such as 1 or 7, ask the issuer whether the transfer was coded correctly before you file, because the IRS uses the code to decide whether the distribution was reported properly.
Worked example
Dana made a Roth IRA contribution for 2025, then decided in 2026 to treat it as a traditional IRA contribution. The custodian moved the contribution, now worth $6,950, to a traditional IRA with the same trustee. The 2026 Form 1099-R should show $6,950 in box 1, -0- in box 2a, no withholding in box 4 and code R in box 7a. The dollar amounts here are illustrative, not an IRS figure. Had the contribution been made for 2026 and recharacterized in 2026, the code would be N instead.
Limits of this page
This page explains how the issuer fills out the form. It does not decide whether a recharacterization was allowed, how it affects your deduction or Roth eligibility, or what to enter on Form 8606. Those depend on your facts, so use the IRS publications for IRAs or a tax professional.
Sources
- Instructions for Forms 1099-R and 5498 (2026): Table 1 distribution codes and the instructions for the 1099-R boxes covered above. Read November 2, 2026.
IRS page last reviewed June 23, 2026. This is the 2026 edition of the instructions, written for forms filed for 2026 distributions; the IRS revises it each year, so check the current edition before relying on a code.
Frequently asked questions
What does code R mean on a 1099-R?
Code R means a recharacterization of an IRA contribution made for 2025 or a previous year. In the 2026 instructions it covers a contribution made for 2025 and recharacterized in 2026 to another type of IRA.
What is the difference between code R and code N?
Code R is for a contribution made for the prior year, 2025 in the 2026 instructions. Code N is for a contribution made for 2026 and recharacterized in 2026.
Is a code R recharacterization taxable?
The instructions tell issuers to enter -0- in box 2a for an IRA recharacterization and say it is not subject to income tax withholding. Whether it affects your return still depends on your facts.
Can code R be combined with other codes?
No. Table 1 in the IRS instructions shows “None” as the allowable combination for code R.
Why would a prior-year contribution be recharacterized in a later year?
The instructions say a participant may recharacterize a prior-year contribution when the IRS postpones the tax filing due date, for example because of a federally declared disaster.
Not tax or legal advice
This page summarizes IRS instructions to payers and is not tax, legal or financial advice. A CPA, enrolled agent or the payer can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.