JosephS1
Expert Alumni

Retirement tax questions

The distribution code for normal distributions would be shown in Box 7 on your 1099-R.  This would normally apply to both Federal and State returns.  I know of no instance where a state would have a different distribution code than what is shown for your Federal distribution code.  A normal distribution from a 401K would have a distribution code of "7".

 

ESOP is an acronym for "Employee Stock Option (or Ownership) Plan".  Normally any purchase made under these types of plans would appear as a line item on your Form W-2.  If you converted your ESOP shares and sold them you would or should have, received a Form 1099-B showing the sale of shares.

 

I have enclosed links that further explain the items that you are questioning.  The distribution codes for Form 1099-R are linked on Page 13 of the 1099-R instructions.

 

Instructions for Form 1099-R

How do I enter ESPP sales

What is an ESOP? 

 

@paulstek 

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