Dealing with 1099-R distribution code P - include in current year or amend prior?

Distribution code P on a 1099-R refers to a qualified distribution from a Roth account. The "P" indicates that it's a distribution from a Roth account that meets qualified distribution rules, which generally means it's not taxable. To determine whether you need to include it on your current year's return or amend a prior year, look at the tax year listed on the 1099-R itself (usually in the top right corner). You should report it for the tax year shown on the form, regardless of when you physically received the document. If the form is for 2024, include it on your 2024 return. If it shows 2023, then you'd typically need to amend your 2023 return if you've already filed. The good news is that if it's truly a qualified distribution (code P), it likely won't increase your tax liability, but you still need to report it on the correct year's return for proper documentation.

I was in a similar situation last year with a 1099-R code P and was totally confused. I found this amazing tool called https://taxr.ai that literally saved my sanity. You just upload your 1099-R and it analyzes exactly what you need to do, whether you need to amend, and explains the whole code P situation clearly. What I learned was that the year on the 1099-R is what matters - not when you physically got the form. In my case, I had a qualified Roth distribution that happened in December but the form came in February. The tool confirmed I needed to include it in the tax year shown on the form.

Just wanted to follow up about my experience with taxr.ai after being skeptical initially. I decided to try it with my pile of confusing tax documents including a 1099-R with code P and some other investment stuff. It honestly clarified everything in minutes! It confirmed I needed to report my distribution on this year's taxes (despite receiving it in January) because the tax year on the form is what matters. The best part was it explained exactly why my distribution had code P (it was from a Roth 401k rollover) and confirmed it wasn't taxable. Wish I'd known about this tool years ago when I unnecessarily amended a return and caused myself a huge headache. Worth checking out if you're dealing with retirement distribution codes.

Has anyone here tried calling the IRS about code P distributions? I tried for THREE DAYS and couldn't get through to a human. Then I found https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes. You can see how it works at https://youtu.be/_kiP6q8DX5c I was super confused about my 1099-R with code P because mine was from an inherited Roth IRA. The IRS agent confirmed I needed to file an amended return for the prior year since the distribution occurred in that tax year (even though I got the form this year). Without getting that clarification, I would've reported it wrong.

I have to admit I was completely wrong about Claimyr. After dismissing it as impossible, I was still desperate enough to try it because I needed answers about my 1099-R with code P before the filing deadline. Within 45 minutes I was talking to an actual IRS agent who knew exactly what to do with my situation. Turns out I needed to amend my prior year return because even though the 1099-R came this year, the tax year listed on the form was last year. The agent explained that code P meant it was a qualified Roth distribution and walked me through exactly which forms I needed to file. Saved me from potentially getting a notice from the IRS later on. Definitely worth it for complicated tax situations where you need definitive answers.

Just wanted to add a data point here - I had a 1099-R with code P last year and learned that it was a qualified distribution from my Roth IRA. The important factor is that you DO have to report it on your tax return even though it's non-taxable income. If the form is dated for this tax year, it belongs on this year's return. If it's dated for last year but you're just receiving it now, you technically need to amend last year's return. However, if there's no taxable amount (box 2a should show $0), amending might not change your tax liability - it just ensures your records match what the IRS has on file.

I received a 1099-R with code P from Fidelity last year and freaked out. Called them directly and they explained it was from my Roth 401k rollover to my Roth IRA. Since it went from a qualified retirement account to another qualified account with the same tax treatment (Roth to Roth), it was non-taxable. The Fidelity rep said to just make sure it's reported on the tax return for the year shown on the 1099-R form itself. Even though it's not taxable income, the IRS computers match the documents they receive with what's on your return, so skipping it could trigger a discrepancy notice.

I had a similar code P situation last year and want to share what I learned after going through this exact confusion. The key thing to remember is that distribution code P indicates a qualified distribution from a Roth account, which means it's generally not taxable but still must be reported. Here's what you need to do: Look at the tax year printed on your 1099-R form (usually in the upper right corner). That's the tax year you need to report it on, regardless of when you physically received the document. If it shows 2024, include it on your current 2024 return. If it shows 2023, you'll need to amend your 2023 return. Since you mentioned the actual distribution happened last December, check which tax year is listed on the form. Most likely it will be for the 2024 tax year since distributions are typically reported based on when they occurred. Don't worry about your tax software not having specific guidance on code P - when you enter the 1099-R information, just input all the details exactly as shown on the form. The software should recognize that code P distributions are generally non-taxable but still need to be reported for IRS matching purposes. The good news is that even though you have to report it, a qualified Roth distribution with code P typically won't increase your tax liability. But getting it on the right year's return is important to avoid any IRS notices later.

I just went through this exact same situation with a 1099-R code P and wanted to share what worked for me. The confusion about which year to report it on is so common! Here's the simple way to figure it out: Find the box on your 1099-R that says "Date of distribution" - that's what determines which tax year it belongs to, not when you received the form. If your distribution happened in December 2024, it goes on your 2024 return even if you just got the form now. Since you mentioned it's from an old 401(k), the code P likely means it was a Roth 401(k) distribution that meets the qualified distribution requirements. The $28,500 amount suggests this might have been a full account closure or rollover situation. One thing that helped me was calling my retirement account administrator directly to confirm exactly what type of distribution it was and why they assigned code P. They were able to explain whether it was a regular distribution, a rollover, or something else, which made the tax reporting much clearer. Even though code P distributions are typically non-taxable, you absolutely need to report it on your return. The IRS gets a copy of every 1099-R, and if it doesn't appear on your return for the correct year, you'll likely get a CP2000 notice asking about the discrepancy. Most tax software handles 1099-R entries pretty well once you input all the information from the form exactly as shown. Just don't skip reporting it thinking it won't matter since it's not taxable!

I've been following this thread and wanted to add my experience with code P distributions since I see a lot of confusion about timing and reporting requirements. I had a similar situation where I received a 1099-R with code P from my previous employer's Roth 401(k). The key thing that saved me a lot of headache was understanding that the IRS uses the "date of payment or distribution" shown on the form to determine which tax year it belongs to - not when you physically received the 1099-R document. In my case, the distribution happened in late December but I didn't get the form until February. Since the distribution date was in December, it belonged on that year's tax return. I had already filed my taxes, so I needed to file an amended return (Form 1040-X). The good news is that even though I had to amend, there was no additional tax owed since code P indicates a qualified Roth distribution. But the IRS still needs you to report it for their records matching system. One tip: if you're unsure about your specific situation, many retirement account providers have specialized tax support lines during tax season. They can usually explain exactly why your distribution received code P and confirm the reporting requirements. It's worth the phone call to get clarity rather than guessing and potentially filing incorrectly. Also, keep all your 1099-R forms and related documentation - if there's ever a question from the IRS later, having the paper trail makes everything much easier to resolve.

I can totally relate to your confusion with code P - I had the exact same panic when I first saw it! After dealing with this last year, here's what I learned that might help: Code P means it's a qualified distribution from a Roth account (either Roth IRA or Roth 401k), which is generally non-taxable. The key is to look at the actual distribution date on your 1099-R form, not when you received the document. If the distribution happened in December 2024, it goes on your 2024 return even though you're just getting the form now. Since you mentioned it's from an old 401(k), this was likely a Roth 401(k) that you either rolled over or took a distribution from. The $28,500 amount suggests it might have been the full account value. Even though code P distributions are typically tax-free, you absolutely must report it on your return. The IRS gets copies of all 1099-R forms and will send you a notice if there's a mismatch between what they have and what you reported. Your tax software should handle it fine once you enter all the information exactly as shown on the form. Don't overthink it - just input the details and let the software do the calculations. Most likely you won't owe any additional tax, but you'll have properly documented the distribution for IRS records. If you're still unsure, I'd recommend calling your retirement account administrator to confirm exactly what type of distribution this was and why it received code P. They usually have tax specialists available during filing season who can clarify these situations.