The correct code is 7. A qualified pension means it was funded with before tax money.
This means you did not pay taxes on this money when you invested it. While invested, this money will grow tax-deferred. No taxes will be owed on gains within the account each year and therefore you will not get a 1099 form each year. Qualified plans receive this special tax treatment because they were designed with retirement in mind.
Q – Qualified distribution from a Roth IRA
