IRA Digital Reference Manual - September 2024 - 307.6.2

Chapter 11 - Reporting Requirements
2023 IRS Form 1099-R Distribution Codes
Guide to IRA Distribution Codes
Distribution
Codes
Explanations
1-Early
distribution, no
known
exception.
Use Code 1 only if the participant has not reached age 59½, 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, a qualified reservist
distribution, or a qualified birth or adoption distribution under section 72(t)(2)(B), (D),
(E), (F), (G) or (H). Code 1 must also be used even if a taxpayer is 59½ or older and
he or she modifies a series of substantially equal periodic payments under section
72(q), (t), or (v) prior to the end of the 5-year period which began with the first
payment.
Use Code 2 only if the participant has not reached age 59½ and you know the
distribution is:
* A Roth IRA conversion (an IRA converted to a Roth IRA).
* A distribution made from a qualified retirement plan or IRA because of an
IRS levy under section 6331.
2-Early
distribution,
exception
applies.
* A governmental section 457(b) plan distribution that is not subject to the
additional 10% tax. But see Governmental section 457(b) plan distributions,
earlier, for information on distributions that may be subject to the 10%
additional tax.
* A distribution from a qualified retirement plan after separation from service in
or after the year the participant has reached age 55.
* A distribution from a governmental defined benefit plan to a public safety
employee (as defined in 72(t)(10)(B)) after separation from service in or after
the year the employee has reached age 50.
* A distribution that is part of a series of substantially equal periodic payments
as described in section 72(q), (t), (u), or (v).
* A distribution that is a permissible withdrawal under an eligible automatic
contribution arrangement (EACA).
* Any other distribution subject to an exception under section 72(q), (t), (u), or
(v) that is not required to be reported using Code 1, 3, or 4.
3-Disability. For these purposes, see section 72(m)(7).
4-Death.
5-Prohibited
transaction.
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.
Use Code 5 if there was a prohibited transaction involving the IRA account. Code 5
means the account is no longer an IRA.
7-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 59½,
(b) for a Roth IRA conversion if the participant is at least age 59½, and (c) to report a
distribution from a life insurance, annuity, or endowment contract and for reporting
income from a failed life insurance contract under sections 7702(g) and (h). See Rev.
Proc. 2008-42, 2008-29 I.R.B. 160, available at www.irs.gov/irb/200829_IRB/ar19.html.
Generally, use Code 7 if no other code applies. Do not use Code 7
for a Roth IRA.
Note: Code 1 must be used even if a taxpayer is 59½ or older and he or she modifies
a series of substantially equal periodic payments under section 72(q), (t), or (v) prior
to the end of the 5-year period which began with the first payment.
D
8, A, B, D,
G, H, K, L,
or P
None
8, B, D, K,
or P
*Used with
code ...(if
applicable)
8, B, D, K,
L, or P
A , B, D, or
K
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IRA Digital Reference Manual - September 2024

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