The code(s) in Box 7 of your Form 1099-R helps identify the type of distribution you received. We use these codes and your answers to some interview questions to determine if your distribution is taxable or subject to an early withdrawal penalty.
- 1 – Early distribution (except Roth), no known exception
- 2 – Early distribution (except Roth), exception applies
- 3 – Disability
- 4 – Death
- 5 – Prohibited transaction
- 6 – Section 1035 tax-free exchange
- 7 – Normal distribution
- 8 – Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2023
- 9 – Cost of current life insurance protection
- A – May be eligible for 10-year tax option (Form 4972)
- B – Designated Roth account distribution
- C – Reportable death benefits under section 6050Y
- D – Annuity payments from nonqualified annuities and distributions from life insurance contracts that may be subject to section 1411 taxes
- E – Distributions under Employee Plans Compliance Resolution System (EPCRS)
- F – Charitable gift annuity
- G – Direct rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA
- H – Direct rollover of a designated Roth account distribution to a Roth IRA
- J – Early distribution from a Roth IRA, no known exception
- K – Distribution of IRA assets not having a readily available fair market value (FMV)
- L – Loans treated as deemed distributions under section 72(p)
- M – Qualified plan loan offset
- N – Recharacterized IRA contribution made for 2023 and recharacterized in 2023
- P – Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2022
- Q – Qualified distribution from a Roth IRA
- R –Recharacterized IRA contribution made for 2022 and recharacterized in 2023
- S – Early distribution from a SIMPLE IRA in the first two years, no known exception
- T – Roth IRA distribution, exception applies
- U – Dividend distribution from ESOP under sec 404(k)
- W – Charges/payments for purchasing qualified long-term care insurance contracts under combined arrangements
Enter the information on your 1099-R as it appears. If you have concerns about the accuracy of the information, contact the payer listed on the form to issue a corrected 1099-R, if necessary.
