Ask the taxgirl: 1099-R Codes

Taxpayer asks:

On the 1099R block 7, what is code 7.

Taxgirl says:

Code 7 in box 7 on a form 1099-R means “normal distribution” for a retirement account.

Here’s a handy list of codes:

1 Early distribution, no known exception

2 Early distribution, exception applies

3 Disability

4 Death

5 Prohibited transaction

6 Section 1035 exchange

7 Normal distribution

8 Excess contribution

9 Cost of life insurance protection

A May be eligible for 10-year tax option

D Excess contribution

E Excess annual additions

F Charitable gift annuity

G Direct rollover

J Early distribution from Roth IRA

L Loans treated as deemed distributions

N Recharacterized IRA contribution

P Excess contribution

Q Qualified distribution from a Roth IRA

R Recharacterized IRA contribution

S Early distribution from a SIMPLE IRA in the first two years, no known exception

T Roth IRA distribution, exception applies

For specific information on each of the codes, you can check out the instructions for form 1099-R.

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

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Comments

  1. Tadd Kempainen

    I left my previous employer and had a 401k loan at the time I left. I received my 1099-R and the code that it lists is 1 (early distribution). My questions to you is that shouldn’t it be listed as L (loans treated as distributions)? Thanks for all of your help.

    Tadd

  2. G. Grant

    I am 55 yrs old, I live in Pennsylvania, I lost my job and had to cash in my pesion fund. I received a 1099-R. What Fed tax/State tax return must I use to file my 1099-R pension distributions. My distrubution code was “1”.

  3. Bonnie

    Received full disbursement of ira, with exception of amount withheld for federal income tax. I have filed my income tax using the 1099 showing distribution code 7 and they tell me that I am getting a full refund. Is this because of my age – will be 68 in May 2010? Thank you for your help.

  4. Mary

    Hi I’m trying to file my taxes this year on turbo tax, and I normally do my own taxes every year anyways. But this year I worked under the table as a waitress. I cant find out what the code is for, for the 1099 form. If someone could give me some advice it would be awesome.
    Thanks,
    Mary

  5. Nicky

    I’m receiving social security disability as of 04/01/2010 along with LTD benefits from an insurance compay. I received my back pay from SSA & had to repay the insurance company. Last year I paid back a little over $11,000. Can I deduct this on my taxes. I do my own taxes on line. So if I’m able to deduct, where would I enter this information & is this a deduction in which IRS is updating & won’t be ready until Feb. 14th?
    Thanks,
    Nicky

  6. Dan

    I rolled over my 401 (Principal) to an IRA (Schwab) this past summer when I last my company. In Jan, I recived a 1099 R from the Principal. The code indicated in box 7 was “G”. No concerns. About two weeks later, I recieved a corrected 1099 r (2 of them) from Principal . One indicated box 7 as “G”, the second as “8” which is an “excess contribuition” and is taxable. However, the enter 401 funds from Principal were transfered to Schwab and still are in the account. i recieved no excess contributed funds from Principal or Schwab for that matter.

    If I use the correct 1099 R, I will pay taxes on the amount listed on the 1099 R with the code of “8”. Again, i have not recieved thes e funs and they are still in my Schwab account. I I asked for the funds from Schwab, they will give me a 1099 R with the same code, hence I will be taxed twice for the same funds. If I don’t request the fund and draw them out when I retire, I will be double taxed again.

    Can you give me advise on how to handle this.

    Regards,

  7. Ralph

    Received full disbursement of ira, with exception of amount withheld for federal income tax. I have not Yet filed my income tax. Using the 1099 showing distribution code 7, will they tell me that I am getting a full refund. Is this because of my age – will be 67 in May 20.
    11? Thank you for your help.

    Awaiting your response

  8. Ramiro A. Banda

    I am a Civil Service retiree. I pay taxes every year on the annuity that I get. I have been entering the Total Employee Contributions (block 9b)every year. The code in block 7 is 7-Nondisability. Do I have to enter the a,ount in block 9b every year?

    PLease advice.

    Ramiro

  9. Monica

    Block 7 and Code 7 – does this mean I would be receiving my distribution for life or at least 10yrs?

  10. josue michaux

    I received form 1099 r ( code 1 ) , I’m trying to find out if I have to pay pennsylvania local tax on this. I payed the tax for federal and state, I’m not sure if i have to also pay local tax.

  11. MARLENE ECKHARDT

    Isn’t it against the law for an employer not to furnish employee with a 1099-R form? My son took a distribution and the company is saying they don’t have to furnish one! Your thoughts. Thanks
    By the way. Love your website.

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