1099R Distribution Codes
1 – Early Distribution, No Exception
Early distribution, no known exception. Use Code 1 only if the participant has not reached age 59 ½, and you do not know if any of the exceptions under Code 2, 3, or 4 apply. However, use Code 1 even if the distribution is made for medical expenses, health insurance premiums, qualified higher education expenses, a first-time home purchase.
2 – Early Distribution, Known Exception
Early distribution, exception applies. Use Code 2 only if the participant has not reached age 59 ½ and you know the distribution is:
- A distribution from a qualified retirement plan after separation from service in or after the year the participant has reached age 55.
- A distribution that is a permissible withdrawal under an eligible automatic contribution arrangement (EACA).
- Roth Conversions, if the participant under 59½;
3 – Disability
Disability. Use for distributions due to disability.
4 – Death
Death. Use Code 4 regardless of the age of the participant to indicate payment to a decedent’s beneficiary, including an estate or trust. Also use it for death benefit payments made by an employer but not made as part of a pension, profit-sharing, or retirement plan.
5 – Prohibited Transaction
Prohibited transaction. Use Code 5 if there was a prohibited transaction.
7 – Normal Distribution
- for a normal distribution from a plan, including a traditional IRA, section 401(k), or section 403(b) plan, if the employee/taxpayer is at least age 59½;
- Roth Conversions, IRA conversion if the participant is at least age 59½;
- to report a distribution from a life insurance, annuity, or endowment contract and for reporting income from a failed life insurance contract under section 7702(g) and (h). See Rev. Proc. 2008-42, 2008-29 I.R.B. 160, available at IRS.gov/irb/2008-29_IRB#RP-2008-42. Generally, use Code 7 if no other code applies. Do not use Code 7 for a Roth IRA.
- Required Minimum Distributions – RMD
8 – Excess Contributions/Deferrals
Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2014.
Use this code for corrective distributions of excess deferrals, excess contributions, and excess aggregate contributions, unless Code P applies. Was there a corrective distribution detailed in your Plan Report?
B – Designated Roth account distribution
Designated Roth account distribution. Use Code B for a distribution from a designated Roth account. But use Code E for a section 415 distribution under EPCRS (see Code E) or Code H for a direct rollover to a Roth IRA.
E – Excess annual additions under 415
Distributions under Employee Plans Compliance Resolution System (EPCRS).
G – Direct rollover to qualified Plan
Direct rollover and direct payment. Use Code G for a direct rollover from a qualified plan.
Did you terminate your 401(k) Plan during the 2014 Calendar year, while rolling your funds to another qualified account? This code would apply in that case.
Note: Do not use Code G for a direct rollover from a designated Roth account to a Roth IRA. Use Code H.
H – Direct rollover of Roth distribution
Direct rollover of a designated Roth account distribution to a Roth IRA.
Use Code H for a direct rollover of a distribution from a designated Roth account to a Roth IRA.
L – Loans treated as distributions
Loans treated as distributions. Use this code if you had a 401(k) Plan Participant loan that was experienced a deemed default during the calendar year.
