topic 1099R box 7 codes in Get your taxes done using TurboTax

1099R box 7 codes

20mcl20 — Fri, 13 Mar 2026 13:48:03 GMT

My 1099R has code 4 in box 7, nothing else.

TT asks whether this is qualified or non-qualified plan.

I answer non-qualified.

TT then adds a D to my 1099R form so now the form does not match what the IRS received.

Issuer of 1099R says it does not make judgment as to whether Q or nonQ so will not reissue 1099R with D.

How do I file something from TT that I know does not match info received by IRS?

Re: 1099R box 7 codes

TomK2023 — Fri, 13 Mar 2026 14:53:14 GMT

When you tell TurboTax that the distribution is from a non-qualified plan (like a commercial annuity or a non-government deferred compensation plan), the program is often programmed to append (add) Code D.

Code 4 ("Death") tells the IRS the recipient is a beneficiary.

Code D identifies the payment as being from a non-qualified annuity.

The electronic file sent to the IRS contains your data in a specific format that explains the "4D" combo. Their computers look at the Taxable Amount (Box 2a) and the Federal Tax Withheld (Box 4)... and long as those numbers match (the paper copy), a descriptive code added by software to clarify the plan type rarely triggers a mismatch notice.

You can double-check your 1040 form (Lines 4 or 5). Make sure the amount in "Taxable Amount" matches what you expected (the distribution from a non-qualified plan should only show the earnings as taxable).

Re: 1099R box 7 codes

Mike9241 — Sat, 14 Mar 2026 04:15:33 GMT

This user forum has no way to know whether Q or NQ. For federal purposes, it doesn't matter. The taxable amount is taxable. However, it may matter for state purposes. For example, Illinois does not tax distributions from qualified plans. However, it does tax distributions from non-qualified plans.