1099 R distribution code 2 or 7
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
H2
New Member

1099 R distribution code 2 or 7

Retired after age 55 receive pension 

Distribution code has been a 2.

 

Will the code change to 7 after age 59 1/2.

 

I know the code doesn’t make a difference for federal taxes.  However it does for my state and local taxes.

 

What constitutes “normal distribution” code 7?  After age 59 1/2  or after I reach normal distribution for the company’s pension plan?

7 Replies
macuser_22
Level 15

1099 R distribution code 2 or 7

The payer must know that the account owner has reached the age of 59 1/2 before a code 7 can be used.

 

https://www.irs.gov/instructions/i1099r#idm140345395727808

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
SteamTrain
Level 15

1099 R distribution code 2 or 7

In the year I turned 59.5, my pension issued two 1099-R forms. 

 

One detailing just the before 59.5 $$ and a code 2....and a second one with just the after 59.5 $$ and a code 7.   I would hope your pension does similar to make it perfectly clear.  I suspect that they are required to do it that way.

 

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
martwm6489
New Member

1099 R distribution code 2 or 7

      the code is 7.  the plan is a 403b. Mi public school employees retirement system and it is qualified. Turbo tax wants an answer about required minimum distribution and then it wants to know how much of the gross distribution was RMD

SteamTrain
Level 15

1099 R distribution code 2 or 7

@martwm6489 

 

IF you were age 70.5 or older in 2019, and the distribution was just from the normal monthly annuitized payments they make  (you didn't take anything extra out of the account) then all of it is an RMD.

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
kaede2009
New Member

1099 R distribution code 2 or 7

code 7

kaede2009
New Member

1099 R distribution code 2 or 7

Thanks

kaede2009
New Member

1099 R distribution code 2 or 7

ok

Dynamic AdsDynamic Ads
v
Privacy Settings