Are you filing a Form 1099-R for your client? Find the explanation for box 7 codes here.
2019 1099-R Box 7 Distribution Codes:
1 | Early distribution, no known exception (in most cases, under age 59 1/2). (See Form 5329) For a rollover to a traditional IRA of the entire taxable part of the distribution, do not file Form 5329. See the instructions for Form 1040. |
2 | Early distribution, exception applies (under age 59 1/2) |
3 | Disability |
4 | Death |
5 | Prohibited transaction |
6 | Section 1035 exchange (a tax-free exchange of life insurance, annuity, qualified long-term care insurance, or endowment contracts) |
7 | Normal distribution |
8 | Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2019 |
9 | Cost of current life insurance protection |
A | May be eligible for 10-year tax option. (See Form 4972.) |
B | Designated Roth account distribution. (If an amount is also reported in box 10, see the Instructions for Form 5329 and Publication 575.) (Note: 2019 1099-R instructions incorrectly refer to box 11.) |
C | Reportable death benefits under section 6050Y |
D | Annuity payments from nonqualified annuities that may be subject to tax under section 1411 |
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 (in most cases, under age 59 1/2) |
K | Distribution of traditional IRA assets not having a readily available FMV |
L | Loans treated as distributions |
M | Qualified plan loan offset |
N | Recharacterized IRA contribution made for 2019 and recharacterized in 2019. |
P | Excess contributions plus earnings/excess deferrals taxable in 2018 |
Q | Qualified distribution from a Roth IRA |
R | Recharacterized IRA contribution made for 2018 and recharacterized in 2019 |
S | Early distribution from a SIMPLE IRA in first 2 years, no known exception (under age 59 1/2) |
T | Roth IRA distribution, exception applies |
U | Dividend distributed from ESOP under section 404(k) |
W | Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements |
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