Form 1099-R Box 7a
Code 2: Early distribution, exception applies
The payer knows an early-distribution exception applies.
Usual federal tax treatment
The taxable amount is generally ordinary income, but the 10% additional tax usually does not apply.
What to do next
Report the distribution on Form 1040. Keep records supporting the exception.
Estimate this distribution
Enter Box 1, Box 2a, Box 4, your age, other income, and code 2 to estimate taxable income and possible additional tax.
Open the 1099-R calculator