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

Normal distribution. Use Code 7: (a) 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 59 ½.

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.

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