Q. What does Distribution code 7 mean on 1099-R?
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.
Q. What is the significance of Box 7 having a code A?
What do the distribution codes in Box 7 of my 1099-R mean?
| Code | Definition |
|---|---|
| A | May be eligible for 10-year tax option (See Form 4972). |
| B | Designated Roth account distribution. NOTE: If code B is in box 7 and an amount is reported in box 10, see the instructions for Form 5329. |
| C | Reportable death benefits under section 6050Y. |
Q. How do I report 1099-R to code 8?
Enter Code 8 or P in box 7 (with Code B, if applicable) to designate the distribution and the year it is taxable. Use a separate Form 1099-R to report a corrective distribution from a designated Roth account. The total amount of the elective deferral is reported in box 12 of Form W-2.
Q. What does total distribution mean on 1099-R?
“Total Distribution” indicates all your contributions were disbursed. “Taxable Amount Not Determined” if you retired in 1986 or 1987, LASERS is unable to determine the taxable amount because IRS. allowed you multiple options (see IRS Publication 939)
Q. What do the codes in box 7 of the 1099-R mean?
The code (s) in Box 7 of your 1099-R helps identify the type of distribution you received. We use these codes and your answers to some interview questions to determine if your distribution is taxable or subject to an early withdrawal penalty.
Q. What is the tax code for 1099-R distribution?
This code indicates the monies are taxable in a prior tax year (as opposed to Code 8 with the distribution taxable the year of the 1099-R form). Code U: Dividends distributed from an ESOP under section 404 (k).
Q. What’s the code for Survivor on a 1099-R?
Use Code 7 in box 7 for reporting military pensions or survivor benefit annuities. Use Code 4 for reporting death benefits paid to a survivor beneficiary on a separate Form 1099-R. Do not combine with any other codes.
Q. How many 1099-R’s are required for Roth distributions?
If more than two codes apply, two 1099-Rs may be required. Common examples include distributions with Roth monies, refunds that include prior and current tax year, and final distributions with a required minimum distribution . You can also view the explanations provided by the IRS here .
