Form 1099R
What Form 1099-R reports, what your Box 7 distribution code means for tax and the 10% early-distribution tax, and a decoder that explains your form.
Form 1099-R code decoder
What Form 1099-R reports
Form 1099-R reports distributions of $10 or more from pensions, annuities, retirement plans (401(k), 403(b), 457), IRAs and insurance contracts. Key boxes: Box 1 gross distribution, Box 2a taxable amount, Box 4 federal income tax withheld, and Box 7 distribution code(s), which tell the IRS what kind of payment it was (IRS Instructions for Forms 1099-R and 5498, 2026).
Form 1099R Box 7 distribution codes
| Code | Meaning | Tax effect |
|---|---|---|
| 1 | Early distribution, no known exception | Under 59½: generally taxable plus the 10% additional tax unless you qualify for an exception (Form 5329) |
| 2 | Early distribution, exception applies | Taxable, but no 10% additional tax |
| 3 | Disability | Taxable; no 10% additional tax |
| 4 | Death | Paid to a beneficiary; no 10% additional tax |
| 7 | Normal distribution | Taxable income (age 59½ or older, or other normal payments) |
| 8 | Corrective distribution taxable in the current year | Excess contributions returned |
| B | Designated Roth account distribution | Roth 401(k)/403(b): earnings taxable unless qualified |
| G | Direct rollover to a qualified plan or IRA | Not taxable |
| H | Direct rollover of a designated Roth account to a Roth IRA | Not taxable |
| J | Early distribution from a Roth IRA | Contributions come out first tax-free; earnings may be taxable |
| L | Loan treated as a deemed distribution | Taxable; 10% tax may apply if under 59½ |
| M | Qualified plan loan offset | Can be rolled over by your tax-filing deadline to avoid tax |
| P | Excess contributions plus earnings taxable in the prior year | Corrective distribution |
| Q | Qualified distribution from a Roth IRA | Not taxable |
| T | Roth IRA distribution, exception applies | Generally not taxable if the Roth IRA meets the holding period |
| Y | Qualified charitable distribution (QCD) | Not taxable when given directly to charity |
Codes can be combined (for example G with 4 for a beneficiary's direct rollover). If your code looks wrong, ask the payer for a corrected 1099-R before you file.
Rollovers and the 1099-R
A direct rollover shows code G (or H for Roth) and isn't taxable. If you received a check and rolled it over yourself within 60 days, the 1099-R usually shows the full amount as a normal or early distribution; you report the rollover on your return. See 401k rollover to IRA.
Common questions
What is Form 1099-R?
The form payers send for distributions from pensions, annuities, retirement plans and IRAs, showing the gross and taxable amounts and a distribution code.
What does code 7 mean on a 1099-R?
A normal distribution, generally taxable income with no 10% additional tax.
What does code G mean on a 1099-R?
A direct rollover to another plan or IRA; it isn't taxable.
What does code 1 mean on a 1099-R?
An early distribution with no known exception; it's generally taxable plus the 10% additional tax unless you qualify for an exception.
Sources
- IRS: Instructions for Forms 1099-R and 5498 (2026)
- IRS: Rollovers of retirement plan and IRA distributions
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General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.