You may see a warning message that your Form 1099-R may need attention when saving your 1099-R information or during the e-file process. In many cases, this is simply a reminder to review your entries and does not mean there is an error.
Warning When Saving Form 1099-R
1. Box 2a Is Less Than Box 1
If the amount in Box 2a (Taxable Amount) is less than the amount in Box 1 (Gross Distribution), the program will display a warning when you save the form.
This message is intended to help you verify that the information was entered correctly.
How to fix it:
If the amounts on your Form 1099-R were entered exactly as shown and Box 1 and Box 2a are different, no correction is needed. Review your entries and continue.
2. Rollover Warning
If you reported a rollover and receive the message:
"Taxable Amount cannot be greater than Gross Distribution minus Rollover amount,"
the rollover information may need to be reviewed.
How to fix it:
Verify the amounts entered for:
- Box 1 (Gross Distribution)
- Box 2a (Taxable Amount)
- Rollover Amount
The difference between Box 1 and Box 2a cannot exceed the rollover amount entered. Correct any inaccurate figures and save the form again.
3. Another 1099-R Uses the Same EIN
If you've entered multiple Forms 1099-R from the same payer, you may receive a warning that the EIN already exists.
How to fix it:
- Scroll to the top of the page.
- Check the box confirming that you want to save the form.
- Select Continue.
This warning is common when multiple distributions are reported by the same financial institution.
Warning During E-File
"Form 1099-R May Need Attention"
When moving through the e-file process, you may see a message stating:
"The amounts you entered for taxable distribution plus rollover amounts, combined, total less than the amount you entered for gross distribution."
In many situations, this warning is informational only and does not require any changes.
How to fix it:
Review your Form 1099-R and compare the entries to the actual document.
If the amounts are correct, you can continue with e-filing.
Common Examples
Roth IRA Contribution Withdrawal
If you withdrew only contributions from a Roth IRA, the distribution may not be taxable. In this situation, Box 1 and Box 2a will often differ.
Qualified Charitable Distribution (QCD)
A Qualified Charitable Distribution can also result in Box 1 being greater than the taxable amount shown in Box 2a.
Both situations may trigger the warning even though the entry is correct.
What Is an Annuitized Distribution?
An annuitized distribution occurs when funds from an annuity, endowment, or life insurance contract are converted into a series of periodic payments.
Generally, the annuitization period must be 10 years or longer. Because annuity payments often include both taxable and non-taxable portions, it's common for Box 1 and Box 2a to be different.
1099-R Rejection Codes F1099R-502-01 or F1099R-502-02
These rejection codes indicate that the payer's EIN or TIN does not match the payer name in IRS records.
How to Correct the Rejection
- Go to Federal
- Select Income (Select My Forms)
- Choose 1099-R, RRB, SSA
- Select Add or Edit a 1099-R
- Open the affected 1099-R
- Verify the payer's name and EIN/TIN exactly as shown on the form
- Correct any errors
- Select Continue to save your changes
Do I Need to Refile?
Yes. After correcting the information, return to the E-file section and retransmit your return.
Before You Continue
Most "may need attention" messages are simply warnings designed to help catch data-entry mistakes. If your Form 1099-R was entered exactly as received, you can usually continue without making changes. If your return was rejected, carefully review the payer's name and EIN before resubmitting your return.