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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