1099-R reporting on QUALIFIED dist from designated Roth account

401(k) plan has designated Roth accounts. Participant receives a QUALIFIED distribution - over 59-1/2, over 5 years.

Reported as a 7 B on 1099-R. IRS is saying it should be a code "Q." When you look at the 1099 codes, "Q" specifically states that it is for a Roth IRA. There is no letter code for a qualified distribution from a designated Roth account.

Are we wrong? I can find nothing to indicate that this should have been reported as a code "Q."

Thanks.

From page 17 of 1099R instructions. It sure looks like 7B is the appropriate code to me.

B—Designated Roth account distribution.

Use Code B for a distribution from a designated Roth account. But use Code E for a section 415 distribution under EPCRS (see Code E) or Code H for a direct rollover to a Roth IRA.

1, 2, 4, 7, 8, G, L, M, P, or U

Thanks. As far as I could tell, the IRS person is just wrong. We'll push back and see what happens.