| 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 |
| 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 or B |
| 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
|
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