I took a distribution out of my 401k in 2016 and I got a 1099-R that shows a distribution code of 7 in Box 7. What does this mean?

[ChristinaS · Accepted solution]

Code 7 in Box 7 means "normal distribution". Are you over 59.5? That's essentially what normal means- over 59.5- at least, that's what it usually means.

When you have a normal distribution, you don't have to pay the early withdrawal penalty of 10% on the taxable amount in Box 2a. However, you do need to pay income taxes on it.