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  • Ask The Taxgirl: 1099-R Codes

Ask The Taxgirl: 1099-R Codes

Kelly Phillips ErbFebruary 11, 2009May 6, 2020

Taxpayer asks:

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

Taxgirl says:

Code 7 in box 7 on 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.

 

Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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15 thoughts on “Ask The Taxgirl: 1099-R Codes”

  1. Tadd Kempainen says:
    January 30, 2010 at 3:16 pm

    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

    Reply
  2. G. Grant says:
    March 28, 2010 at 2:46 pm

    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”.

    Reply
  3. Bonnie says:
    April 7, 2010 at 4:48 pm

    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.

    Reply
  4. Mary says:
    January 9, 2011 at 11:57 am

    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

    Reply
  5. Nicky says:
    January 31, 2011 at 12:44 pm

    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

    Reply
  6. Dan says:
    February 18, 2011 at 3:15 pm

    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,

    Reply
  7. Ralph says:
    February 19, 2011 at 2:43 pm

    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

    Reply
  8. Ramiro A. Banda says:
    February 1, 2012 at 1:46 pm

    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

    Reply
  9. Monica says:
    March 8, 2012 at 12:28 pm

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

    Reply
  10. josue michaux says:
    April 13, 2012 at 3:22 pm

    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.

    Reply
  11. MARLENE ECKHARDT says:
    April 14, 2014 at 7:53 pm

    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.

    Reply

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