Questions & Answers

What does the number or letter in Box 7 of my 1099-R mean?

Box 7 is the distribution code that identifies the type of distribution received. The following are the codes and their definitions:
1 - Early distribution, no known exception (in most cases under age 59 1/2)

2 - Early distribution, exception applies (under age 59 1/2)

3 - Disability

4 - Death

5 - Prohibited transaction

6 - Section 1035 exchange

7 - Normal distribution

8 - Excess contributions plus earnings taxable in 2020

9 - Cost of current life insurance protection

A - May be eligible for 10-year tax option (not supported)

B - Designated Roth account distribution

C - Reportable death benefits under section 6050Y

D - 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 to a qualified plan

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 59 1/2)

K - Distribution of Traditional IRA assets not having a readily available FMV

L - Loans treated as distributions

M - Qualified plan loan offset

N - Recharacterized IRA contribution made for 2020 and recharacterized in 2020

P - Excess contributions plus earnings/excess deferrals taxable in prior year

Q - Qualified distribution from a Roth IRA

R - Recharacterized IRA contribution made for 2019 and recharacterized in 2020

S - Early distribution from a SIMPLE IRA in first 2 years, no known exception (under age 59 1/2) May be subject to an additional 25 percent tax

T - Roth IRA distribution, exception applies

U - Dividend distribution from ESOP under section 404(k)

W - Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements

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