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, D, K, L, M, or P |
2 |
Early distribution, exception applies (under age 59 ½) |
Code 2 can be combined with the following codes: 8, B, D, K, L, M, 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, D, G, H, K, L, M, 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, D, K, L, or M |
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, 4, B, J or K |
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, G, L, M, P, or U
|
C | Reportable death benefits under section
6050Y | Code C can be combined with the following code: D |
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 |
E |
Distributions under Employee Plans Compliance Resolution System (EPCRS) |
None |
F |
Charitable gift annuity |
None |
G |
Direct rollover and rollover contribution |
Code G can be combined with the following codes: 4, B, or K |
H |
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 |
K |
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 |
M | Qualified 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 |
R |
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
|