1099R distribution code 3 is box 2a taxable

[mccarley92]

lump sum distribution due to hardship (illness) code is a 3 (disability). will the amount in box 2a still be the taxable amount - 2b is not marked

[MinhT · Accepted solution]

Distributions from a retirement account for disability (code 3 in box 7) are taxable. So the amount shown in box 2a is taxable. However, the distribution is exempt from the early penalty withdrawal of 10% (if you are aged 59 1/2 or less).