1099-R Distribution Codes

Box 7a tells tax software why the payment occurred. It can signal an early distribution, known exception, rollover, Roth payment, beneficiary payment, or qualified charitable distribution.

Code	Meaning	Usual treatment
1	Early distribution, no known exception	The taxable amount is generally ordinary income and may also face the 10% additional tax.
2	Early distribution, exception applies	The taxable amount is generally ordinary income, but the 10% additional tax usually does not apply.
3	Disability	The taxable amount is generally ordinary income; the 10% additional tax usually does not apply.
4	Death	The taxable amount is generally ordinary income to the recipient; the early-distribution additional tax does not apply.
7	Normal distribution	The taxable amount is generally ordinary income with no 10% additional tax.
G	Direct rollover	A qualifying direct rollover is generally not taxable. A pre-tax amount rolled to a Roth account is a taxable conversion.
H	Direct rollover of designated Roth account	A qualifying direct Roth-to-Roth rollover is generally not taxable.
J	Early Roth IRA distribution	Roth contributions come out first; taxable earnings may face ordinary income tax and the 10% additional tax.
Q	Qualified Roth IRA distribution	A qualified Roth IRA distribution is generally tax-free and penalty-free.
Y	Qualified charitable distribution	The qualifying amount is excluded from income and may count toward an RMD.

Code does not equal taxable amount

Use Box 2a, your contribution basis, rollover confirmation, Roth ordering records, and QCD documentation. If the payer used code 1 but you qualify for an exception, Form 5329 is where you generally claim it.

Sources

Related Calculators

1099-R Tax Calculator

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Roth Conversion Calculator

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