1099-R Code R: Recharacterized Contribution (Prior Year)

You switched last year's contribution to the other IRA type this year; may affect last year's return.

What the IRS instructions say

Official meaning, from the Instructions for Forms 1099-R and 5498 A recharacterization of a prior-year IRA contribution moved to the other IRA type this year.

Is it taxable, and does the 10 percent penalty apply?

None by itself, but it points at last year: an R form reports a prior year contribution recharacterized this year, so the change belongs on the prior year return, which may need amending if it was already filed. Box 2a is zero.

Worth knowing: N versus R is purely which year's contribution moved: N means the same year, R means the prior year. The IRS also allows prior year recharacterizations when it grants disaster related filing relief.

If this code looks wrong

The IRS matches Box 7 against your return, so start with the payer: request a corrected 1099-R, which is the IRS's standing instruction for incorrect forms. No corrected copy by the end of February? The IRS can contact the payer for you, and Form 4852 substitutes as a last resort. Remember that an indirect 60-day rollover is correctly coded 1 or 7, because the payer cannot see the redeposit; direct rollovers should show G or H, as our rollover guide explains before the paperwork ever gets cut.

← All 1099-R Box 7 codes

Sources: IRS Instructions for Forms 1099-R and 5498; IRS Tax Topics 558 (early distributions), 413 (rollovers), and 154 (incorrect forms). Verified July 2026.

General educational information, not tax advice. Your distribution's taxation depends on your facts; consult a qualified tax professional. ClearChoiceRadar is not affiliated with the IRS or any government agency.