Why am I being taxed on 1099-R when the distribution code is 3

L420 — Mon, 23 Feb 2026 09:58:25 GMT

Re: Why am I being taxed on 1099-R when the distribution code is 3

SantinoD — Fri, 27 Jan 2023 23:45:42 GMT

Code 3 for Retirement distribution on Form 1099-R does not mean it is non-taxable. Distributions taken for disability are taxed as wages until you reach the minimum retirement age.

However, such a distribution is not subject to the 10% early withdrawal penalty, regardless of the age of the taxpayer.

topic Why am I being taxed on 1099-R when the distribution code is 3 in Retirement tax questions

Why am I being taxed on 1099-R when the distribution code is 3

Re: Why am I being taxed on 1099-R when the distribution code is 3