What is the correct 7 distribution code to report a QCD?

kkcryer · ‎March 6, 2026

VolvoGirl · ‎March 6, 2026

It should be a code 7. Although there is a new code Y that may be used.

After you enter form 1099-R keep going. If you have entered a birth date which makes you older than 70 1/2 there will be a page that asks Do any of these situations apply? Midway down is Were any of these funds sent directly to a charity? Then it will ask for the amount.

The code in box 7 of form 1099-R must be 7 (or new code Y) and the little IRA/SEP/SIMPLE box must be checked. A IRA QCD should be 0 taxable on 1040 line 4b and the QCD box checked. Unless you have other 1099R taxable amounts on 4b. You can’t do a QCD from a 401K.

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VolvoGirl · ‎March 6, 2026

It should be a code 7. Although there is a new code Y that may be used.

After you enter form 1099-R keep going. If you have entered a birth date which makes you older than 70 1/2 there will be a page that asks Do any of these situations apply? Midway down is Were any of these funds sent directly to a charity? Then it will ask for the amount.

The code in box 7 of form 1099-R must be 7 (or new code Y) and the little IRA/SEP/SIMPLE box must be checked. A IRA QCD should be 0 taxable on 1040 line 4b and the QCD box checked. Unless you have other 1099R taxable amounts on 4b. You can’t do a QCD from a 401K.