Submitted by: Submitted by rmadden15
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Date Submitted: 09/24/2015 02:37 PM
Codes
This article reviews the codes found in Box 7 to help you identify the type of distribution you received.
Code | Definition |
1 | Early distribution, no known exception (in most cases, under age 59 ½) |
2 | Early distribution, exception applies (under age 59 ½) |
3 | Disability |
4 | Death – regardless of the age of the employee/taxpayer to indicate to a decedent’s beneficiary, including an estate or trust. Also used for death benefit payments made by an employer but not made as part of a pension, profit-sharing, or retirement plan. |
5 | Prohibited Transaction – This generally means the account is no longer an IRA. |
6 | Section 1035 exchange (a tax-free exchange of life insurance, annuity, qualified long-term care insurance, or endowment contracts) |
7 | Normal distribution |
8 | Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2013 |
9 | Cost of current life insurance protection |
A | May be eligible for 10-year tax option (see Form 4972) |
B | Designated Roth account distributionNote: If Code B is in box 7 and an amount is reported in box 10, see the instructions for Form 5329. |
D | Annuity payments from nonqualified annuities that may be subject to tax under section 1411 |
E | Distributions under Employee Plan Compliance Resolution System (EPCRS) |
F | Charitable gift annuity |
G | Direct rollover of a distribution (other than a designated Roth account distribution) to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA |
H | Direct rollover of a designated Roth account distribution to a Roth IRA |
J | Early distribution from a Roth IRA, no known exception (in most cases, under age 59 ½) |
L | Loans treated as distributions |
N | Recharacterized IRA contribution made for 2013 and recharacterized in 2013 |
P | Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2012 |
Q | Qualified distribution from a Roth IRA...