On my 1099-R, what do the codes in box 7 mean?
Box 7 of 1099-R identifies the type of distribution received. These codes descriptions are taken directly from the back of form 1099-R.
|Early distribution, no known exception (in most cases, under age 59½).|
|Early distribution, exception applies (under age 59½).|
Death – regardless of the age of the employee/taxpayer to indicate to a decedent’s beneficiary, including an estate or trust. Also used for death benefit payments made by an employer but not made as part of a pension, profit-sharing, or retirement plan.
|Prohibited Transaction - this generally means the account is no longer an IRA.|
|Section 1035 exchange (a tax-free exchange of life insurance, annuity, qualified long-term care insurance, or endowment contracts).|
|Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2018.|
Cost of current life insurance protection.
May be eligible for 10-year tax option (See Form 4972).
Designated Roth account distribution.
Reportable death benefits under section 6050Y.
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 59½)|
|K||Distribution of traditional IRA assets not having a readily available FMV (fair market value).|
|L||Loans treated as distributions.**|
|M||Qualified plan loan offset.|
|N||Recharacterized IRA contribution made for 2018 and recharacterized in 2018.|
|P||Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2017.|
|Q||Qualified distribution from a Roth IRA.|
|R||Rechacterized IRA contribution made for 2017 and recharacterized in 2018.|
|S||Early distribution from a SIMPLE IRA in first 2 years, no known exception (under age 59½).|
|T||Roth IRA distribution, exception applies.|
|U||Dividend distribution from ESOP under section 404(k). NOTE: This distribution isn't eligible for rollover.|
|W||Charges or payment for purchasing qualified long-term care insurance contracts under combined arrangements.|
** If a loan is treated as a deemed distribution, it is reportable on Form 1099-R using the normal taxation rules of a retirement account. The distribution also may be subject to the 10% early distribution tax under Section 72(t). It is not eligible to be rolled over to an eligible retirement plan nor is it eligible for the 10-year tax option.
Within the program, if your loan is treated as a deemed distribution, please enter in box 7, Code L plus Code 1 or Code B, whichever is applicable. To enter please:
- Federal Section
- Income (Enter Myself)
- IRA/Pension 1099-R, 1099-RRB
- Add or Edit Form 1099-R
- In box 7 enter L1 or LB, whichever is applicable to your situation