Start For Free

Fast, Secure, and Always Accurate!

Back to List

Category: 1099's

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).


Normal distribution


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.
NOTE: If code B is in box 7 and an amount is reporetd in box 10, see the instructions for Form 5329.


Reportable death benefits under section 6050Y.


Annuity payments from nonqualified annuities that may be subject to tax under section 1411.

EDistributions under Employee Plans Compliance Resolution System (EPCRS).
FCharitable gift annuity.
GDirect rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA.
HDirect rollover of a designated Roth account distribution to a Roth IRA.
JEarly distribution from a Roth IRA, no known exception (in most cases, under age 59½)
KDistribution of traditional IRA assets not having a readily available FMV (fair market value).
LLoans treated as distributions.**
MQualified plan loan offset.
NRecharacterized IRA contribution made for 2018 and recharacterized in 2018. 
PExcess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2017.
QQualified distribution from a Roth IRA.
RRechacterized IRA contribution made for 2017 and recharacterized in 2018.
SEarly distribution from a SIMPLE IRA in first 2 years, no known exception (under age 59½).
TRoth IRA distribution, exception applies.
UDividend distribution from ESOP under section 404(k). NOTE: This distribution isn't eligible for rollover.
WCharges 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