Defining 1099-R Codes
Your age dictates the 1099-R conversion code, which appears in box 7 “Distribution code(s).” If you have not yet reached age 59 1/2, your custodian will place a “2” in box 7. If you are 59 1/2 or older, your box 7 code is “7.” The “IRA/SEP/SIMPLE” box should also be checked if you’re 59 1/2 or older. This lets the IRS know whether you meet the minimum age requirements for distribution from your retirement plan.
A conversion is not a distribution – but you can slip up and turn a conversion into a penalized distribution if you fail to follow the rules closely.
How to Convert 457 Retirement Fund to a Roth IRA (zacks.com)
