1099-R Distribution Codes

Code 1, "early distribution, no known exception," means the payer believes you were under age 59½ at the time and doesn't know of any exception. The taxable amount is generally ordinary income and usually also subject to the 10% additional tax — unless you separately qualify for an exception the payer didn't know about, which you claim yourself on Form 5329.

Yes. Box 7 can show two codes together (for example, a code combined with an IRA/SEP/SIMPLE checkbox, or codes like 'P' plus '1' for an excess contribution corrected after the deadline). When two codes apply to different parts of the same distribution, the payer may issue separate 1099-Rs instead — check whether you received more than one form for the same account.

Code G is a direct rollover to a traditional account (another 401(k), 403(b), governmental 457(b), or traditional/SEP/SIMPLE IRA) and is generally non-taxable. Code H is a direct rollover of a designated Roth account distribution to a Roth IRA. Both mean funds moved directly between custodians without you taking possession, so Box 2a is typically $0 for a properly executed direct rollover of either type.

Code Q means the payer determined the distribution is a qualified Roth IRA distribution — generally tax-free and penalty-free. Code J ("early Roth IRA distribution") instead means the payer could not confirm the distribution was qualified; Roth contributions come out first under the ordering rules, and any taxable earnings can face ordinary income tax plus the additional tax, worked out using your own contribution and conversion history (often via Form 8606).

Code Y flags an IRA distribution the custodian was informed is intended as a Qualified Charitable Distribution (QCD) sent directly to an eligible charity. It's an optional code some custodians use; many still report a QCD with the ordinary distribution code (often 7) and leave the QCD exclusion for you to claim on your return, so don't assume the absence of code Y means your distribution wasn't a QCD.

No. Code 4 (death) distributions to a beneficiary or estate are never subject to the early-distribution additional tax, regardless of the beneficiary's own age, though the taxable amount is still generally ordinary income. Separate post-death distribution rules — often a 10-year payout window for non-spouse beneficiaries under the SECURE Act — determine how much must come out and by when.