Tools
Rss Categories

What are the 1099-R distribution codes?

Views: 4802 Created: 2017-05-23 12:53 Last Updated: 2019-01-09 15:53

SYMPTOM

What are the 1099-R distribution codes?

RESOLUTION

Procedure 1 (1099-R Distribution codes)

The following distribution codes and combinations may be entered on Form 1099-R.  For more information about the 1099-R distribution codes, please refer to the IRS Instructions for Form 1099-R.

Distribution Code Description Valid Combinations
1  Early distribution, no known exception (in most  cases,  under age 59 ½)  Code 1 can be combined with the  following  codes:  8, B, C, D, L, or P
2  Early distribution, exception applies (under age 59 ½)  Code 2 can be combined with the  following  codes: 8, B, C, D, L, or P
3  Disability  Code 3 can be combined with the  following  code: D
4  Death  Code 4 can be combined with the  following  codes: 8, A, B, C, D, G, H, L, or  P
5  Prohibited transaction  None
6  Section 1035 exchange (a tax-free exchange of life insurance, annuity, qualified long-term care  insurance, or endowment contracts)  Code 6 can be combined with the  following  code: W
7  Normal distribution  Code 7 can be combined with the  following  codes: A, B, C, D, or L
8  Excess contributions plus earnings/ excess deferrals (and/or earnings) taxable in the current tax  year  Code 8 can be combined with the  following  codes: 1, 2, B, or J
9  Cost of current life insurance protection (premiums paid by a trustee or custodian for current  insurance protection)  None
A  May be eligible for 10-year tax option (Note: Distribution code A must be used in combination with another code.)  Code A can be combined with the  following  codes: 4  or  7
B  Designated Roth account distribution  Code B can be combined with the   following  codes: 1, 2, 4, 7, 8, C, G, L, P,   or U
 C Reportable death benefits under section 6050Y Code C can be combined with the following code: D
 Annuity payments from non-qualified annuities and distributions from life insurance contracts that  may be subject to tax under section 1411 (Note: Distribution code D must be used in combination with another code.)  Code D can be combined with the  following  codes: 1, 2, 3, 4, 7, or C
 Distributions under Employee Plans Compliance Resolution System (EPCRS)  None
 Charitable gift annuity  None 
 Direct rollover and rollover contribution  Code G can be combined with the  following  codes: 4 or B 
 Direct rollover of distribution from a designated Roth account to a Roth IRA  Code H can be combined with the  following  code: 4
J  Early distribution from a Roth IRA  Code J can be combined with the  following  codes: 8 or P 
 Distribution of IRA assets not having a readily available FMV (Note: Distribution code K must be used in  combination with another code.)  Code K can be combined with the  following  codes:  1, 2, 4, 7, 8, or G 
L  Loans treated as deemed distributions under section 72(p)  Code L can be used with the following  codes: 1, 2, 4, 7, or B 
 MQualified plan loan offset Code M can be combined with the following codes: 1, 2, 4, 7, or B
N  Recharacterized IRA contribution made for the current tax year  None
P Excess contributions plus earnings/excess deferrals taxable in the preceding tax year   Code P can be used with the following  codes: 1, 2, 4, B, or J 
Q  Qualified distributions from a Roth IRA.  (Distribution from a Roth IRA when the 5-year holding period has been  met, and the recipient has reached 59 ½, has died, or is disabled.)  None
 Recharacterized IRA contribution made for the preceding tax year  None 
S Early distribution from a SIMPLE IRS in the first 2 years, no known exception   None 
T  Roth IRS distribution, exception applies because participant has reached 59 ½, has died, or is disabled, but it is  unknown if the 5-year period has been met.  None
U  Distribution from ESOP under Section 404(k)  Code U can be used with the following  code: B 
W  Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements  Code W can be used with the following  code: 6 

APPLIES TO

  • Current version of Yearli