1099 Forms › Form 1099-R Distribution Codes Explained for 2026
At a Glance
Form 1099-R Distribution Codes
Box 7 of Form 1099-R contains distribution codes that describe the type of distribution and whether exceptions to the 10% early withdrawal penalty apply. Understanding these codes is essential for accurate tax reporting.
Primary Distribution Codes
| Code | Description | 10% Penalty? |
|---|---|---|
| 1 | Early distribution, no known exception (under age 59½) | Yes, unless exception applies |
| 2 | Early distribution, exception applies (under age 59½) | No |
| 3 | Disability | No |
| 4 | Death | No |
| 5 | Prohibited transaction | Varies |
| 6 | Section 1035 exchange | No |
| 7 | Normal distribution (age 59½ or older) | No |
| 8 | Excess contributions plus earnings/excess deferrals taxable in prior year | Varies |
| 9 | Cost of current life insurance protection | No |
| A | May be eligible for 10-year tax option | No |
| B | Designated Roth account distribution | Varies |
| C | Reportable death benefits under section 6050Y | No |
| D | Annuity payments from nonqualified annuities subject to section 6050Y | Varies |
| E | Distributions under Employee Plans Compliance Resolution System (EPCRS) | Varies |
| F | Charitable gift annuity | No |
| G | Direct rollover to qualified plan, 403(b), governmental 457(b), or IRA | No (not taxable) |
| H | Direct rollover to Roth IRA | No (taxable as conversion) |
| J | Early distribution from Roth IRA, no known exception | Yes on earnings |
| K | Distribution of traditional IRA assets not having a readily available FMV | Varies |
| L | Loans treated as deemed distributions under section 72(p) | Yes if under 59½ |
| M | Qualified plan loan offset | Yes if under 59½ |
| N | Recharacterized IRA contribution made for prior year | No |
| P | Excess contributions plus earnings taxable in current year | Varies |
| Q | Qualified distribution from Roth IRA | No (not taxable) |
| R | Recharacterized IRA contribution made for current year | No |
| S | Early distribution from SIMPLE IRA in first 2 years, no known exception | 25% penalty |
| T | Roth IRA distribution, exception applies | No |
| U | Dividend distribution from ESOP under section 404(k) | No |
| W | Charges or payments for qualified long-term care insurance contracts | No |
Most Common Codes
The codes you will encounter most frequently are:
- Code 1: Early distribution (under 59½) with potential 10% penalty
- Code 7: Normal distribution (59½ or older)
- Code G: Direct rollover (not currently taxable)
- Code 4: Distribution due to death
Using Multiple Codes
Box 7 can contain up to two codes. When two codes are used, the first code describes the distribution type and the second provides additional information. For example:
- 1B: Early distribution from a designated Roth account
- 7B: Normal distribution from a designated Roth account
E-File Form 1099-R with BoomTax
E-file your Form 1099-R with BoomTax. Our platform validates distribution codes to ensure accurate reporting.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.