topic 1099 R distribution code 2 or 7 in Retirement tax questions

1099 R distribution code 2 or 7

H2 — Tue, 17 Dec 2019 03:59:41 GMT

Retired after age 55 receive pension

Distribution code has been a 2.

Will the code change to 7 after age 59 1/2.

I know the code doesn’t make a difference for federal taxes. However it does for my state and local taxes.

What constitutes “normal distribution” code 7? After age 59 1/2 or after I reach normal distribution for the company’s pension plan?

Re: 1099 R distribution code 2 or 7

macuser_22 — Tue, 17 Dec 2019 04:17:44 GMT

The payer must know that the account owner has reached the age of 59 1/2 before a code 7 can be used.

https://www.irs.gov/instructions/i1099r#idm140345395727808

Re: 1099 R distribution code 2 or 7

SteamTrain — Tue, 17 Dec 2019 13:25:32 GMT

In the year I turned 59.5, my pension issued two 1099-R forms.

One detailing just the before 59.5 $$ and a code 2....and a second one with just the after 59.5 $$ and a code 7. I would hope your pension does similar to make it perfectly clear. I suspect that they are required to do it that way.

Re: 1099 R distribution code 2 or 7

martwm6489 — Mon, 03 Feb 2020 21:12:40 GMT

the code is 7. the plan is a 403b. Mi public school employees retirement system and it is qualified. Turbo tax wants an answer about required minimum distribution and then it wants to know how much of the gross distribution was RMD

Re: 1099 R distribution code 2 or 7

SteamTrain — Tue, 03 Nov 2020 12:41:32 GMT

@martwm6489

IF you were age 70.5 or older in 2019, and the distribution was just from the normal monthly annuitized payments they make (you didn't take anything extra out of the account) then all of it is an RMD.

Re: 1099 R distribution code 2 or 7

kaede2009 — Tue, 03 Nov 2020 01:19:10 GMT

code 7

Re: 1099 R distribution code 2 or 7

kaede2009 — Tue, 03 Nov 2020 01:20:10 GMT

Thanks

Re: 1099 R distribution code 2 or 7

kaede2009 — Tue, 03 Nov 2020 01:21:53 GMT