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).
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 section 401(k) plan if the participant is at least age 59½ at the time of distribution
- Generally, use Code 7 if no other distribution code applies; and
- for Required Minimum Distributions (RMDs) from a section 401(k) plan when the participant has reached the applicable age and no other code is required.
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.
Code B may be used in combination with another distribution code in Box 7 to indicate the nature of the distribution (for example, Code B with Code 7 for a normal distribution, or Code B with Code 1 for an early distribution).
E – Excess annual additions under 415
Distributions under Employee Plans Compliance Resolution System (EPCRS).
G – Direct rollover to qualified Plan
Use Code G for a direct rollover from a qualified plan, including a 401(k) plan, to another eligible retirement plan or for a direct in-plan Roth rollover.
Examples include:
- Direct rollover from a 401(k) plan to another qualified plan or eligible retirement account.
- Direct rollover following plan termination
- In-plan Roth rollover (Roth conversion) where pre-tax funds are moved directly to a designated Roth account within the same 401(k) plan. For an in-plan Roth rollover, report the amount converted in Box 1 and the taxable portion in Box 2a.
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.