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Form 1099-R Common Distributon Codes (Box 7)*
Distribution Codes | Explanations |
1. Early distribution, no known exception | Participant is under age 59 ½ and there is no known exception such as for medical expenses, first-time home purchase, qualified educational expenses or a qualified reservist distribution. May be subject to a 10% penalty as well as income taxes. |
2. Early distribution, exception applies | Participant is under age 59 ½ , however an exception applies such as those noted above in the description for Code 1. Not likely subject to the 10% penalty. |
4. Death | Distribution is due to the death of the participant |
7. Normal distribution | Participant is at least age 59 ½ (avoids 10% penalty) |
J. Early Roth distribution | Participant is under age 59 ½ , distribution is subject to 10% penalty |
N. Recharacterized IRA contribution made in current year | Participant recharacterized an IRA contribution in the same year in which the contribution was made |
Q. Qualified Roth distribution | Participant has owned the Roth account for at least 5 years and is either: • At least 59 ½ • Deceased or • Disabled |
R. Recharacterized IRA contribution made in prior year | Participant recharacterized an IRA contribution which was made in the prior year |
T. Roth IRA distribution, exception applies | Unknown if participant has owned the Roth for at least 5 years, but he/she is either: • At least 59 ½ • Deceased • Disabled |
*This is a truncated list of possible codes, and does not contain full explanations for each code. Consult with your tax adviser or visit the IRS website at www.irs.gov for more details.