What does Distribution code 7 mean on a 1099-R?

Posted on by Muna Meyer

What does Distribution code 7 mean on a 1099-R?

Use Code 7 in box 7 for reporting military pensions or survivor benefit annuities. Use Code 4 for reporting death benefits paid to a survivor beneficiary on a separate Form 1099-R. Do not combine with any other codes. Governmental section 457(b) plans.

What are the IRA distribution codes?

1099-R distribution codes

  • Code 1: Early distribution, no known exception.
  • Code 2: Early distribution, exception applies.
  • Code 3: Disability.
  • Code 4: Death.
  • Code 7: Normal distribution.
  • Code 8: Corrective refunds taxable in current year.
  • Code G: Direct Rollover to a qualified plan, 403(b), governmental 457(b) or IRA.

What is a 1099-R Box 7 code G?

Distribution code G on your 1099-R indicates that your WRS benefit was rolled over to another qualified plan. The amount you rolled over will not be subject to taxes until you start taking money from your IRA/qualified plan. However, rollovers to Roth IRAs are subject to income taxes in the year the rollover is made.

What is distribution code 7 in box 7 mean?

Normal distribution
Code 7. Use code 7, Normal distribution, when the IRA owner or plan participant is age 59½ or older (use code 1 if the individual is age 59½ or older but modified a series of substantially equal periodic payments before five years). Code 7 may be used in combination with codes A, B, D, K, L, or M.

What is Code E on 1099-R?

Distributions under Employee Plans Compliance
Form 1099-R Distribution Codes for Defined Contribution Plans

Distribution Codes Explanation
Code E: Distributions under Employee Plans Compliance Resolution System (EPCRS). Use for 415 Corrections.
Code G: Direct rollover and direct payment. Use for a direct rollover into another qualified plan or in-plan Roth conversion.

What is m7 distribution code?

1099-R Codes for Box 7

Box 7 Code Description *Used with code…(if applicable)
7 Normal distribution A, B, D, K, L, or M
8 Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2020 1, 2, 4, B, J, or K
9 Cost of current life insurance protection None
A May be eligible for 10-year tax option 4 or 7

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