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 contractsunder 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.
FAQs
Code J indicates that there was an early distribution from a ROTH IRA.
What is the code J in box 7? ›
Code J indicates that there was an early distribution from a ROTH IRA.
What is the distribution code for a hardship withdrawal? ›
Distribution code 1 indicates an early distribution from the retirement plan and the payer knows of no reason why the distribution would not be subject to the 10% early withdrawal penalty. However, the taxpayer may qualify for an exclusion to the early withdrawal penalty, e.g., for a qualified disaster distribution.
How do I know if my 1099-R is IRA SEP or simple? ›
Box 7 - IRA/SEP/SIMPLE check box will be checked if the distribution is from and IRA, SEP, or SIMPLE plan. Box 8 - Other shows the value of any annuity contract that was part of the distribution. This amount is not taxable when it is received and is not included in boxes 1 or 2a.
What is the code P in box 7? ›
The IRS suggests that anyone using Code P for the refund of an IRA contribution under section 408(d)(4), including excess Roth IRA contributions, advise payees, at the time the distribution is made, that the earnings are taxable in the year in which the contributions were made.
What is distribution code Q in box 7? ›
, it indicates a qualified distribution; therefore, this distribution is not reported on Form 8606, which reports nonqualified distributions. Because the qualified distribution is not included in the Form 8606 calculations, it doesn't reduce the basis.
What is the hardship code on a 1099-R? ›
1099R box 7 code 1 - medical hardship exemption.
What is the distribution code for early withdrawal? ›
Code 1: Early distribution, no known exception. This distribution is subject to the 10% penalty.
What do codes in box 7 of 1099-R mean? ›
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.
How to figure out taxable amount on 1099-R? ›
Box 2a, Taxable Amount: This is the portion of pre-tax money of your Gross Distribution (in Box 1). Any post-tax money distributed would be represented in Box 5. When combined, these two boxes should equal your total distribution in Box 1.
How do I know if the amount on my 1099R (1099-R) is taxable on my PA Personal Income Tax Return? To determine if the amount you received is taxable in Pennsylvania, review boxes 1 through 3 (the amount you received or your distributions) and the PA PIT treatment of box 7 (the codes that will...
What is a 1M distribution code on a 1099-R? ›
A code 1M is fully taxable UNLESS you use other funds to roll that money into a retirement account by the due date of the tax return. Then you report is as a non-taxable rollover.
What is the code E on a 1099-R? ›
Code E: Distributions under Employee Plans Compliance Resolution System (EPCRS). Use for 415 Corrections. Code G: Direct rollover and direct payment. Use for a direct rollover into another qualified plan or in-plan Roth conversion.
What is code 8 on a 1099-R? ›
If your retirement plan made a corrective distribution of excess amounts (excess deferrals, excess contributions, or excess annual additions), your Form 1099R should have the code "8," "B," "P," or "E" in box 7. This information is found in Publication 575, Pension and Annuity Income.
