A Code 3 in Box 7 of a 1099-R means you are taking the distribution as a result of a disability.
As KatrinaB states above, the Box 7 codes identify the type of distribution and whether the distribution is taxable and/or subject to a penalty.
In the questions after you enter the 1099-R, it will ask you about your retirement age. If you are under the full retirement age then the distribution will appear on Line 1 of your Form 1040 with Wages and Salaries. If you are at or over full retirement age the distribution will appear on Line 4 of your Form 1040.
To enter the 1099-R into TurboTax:
- While signed in and working in TurboTax
- Click on Federal in the left-hand black menu
- Click on Income and Expenses
- Scroll down and click on Show More next to Retirement Income and Social Security
- Click on Start or Revisit next to IRA, 401K and Pension Plan (1099-R)
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