Form 1099 - R Codes

 Form 1099-R - Distribution from retirement accounts

When you take out money from your retirement accounts, you receive form 1099-R from the payer. Here we present the basic idea on the codes on 1099-R.

You might receive distributions from your retirement accounts for various reasons but some of the reasons are listed below. The income from retirement account falls under ordinary income on form 1040 line 4b or 5b.

Loans against pension plans

Annuity and pension payments

Account rollovers – example, from one brokerage to another

Early retirement account distributions

What are the boxes on form 1099-R

Box 1: total amount of distribution from a retirement plan or annuity, this is the gross amount of dollars you received from the plan. It may be taxable or not depending on many factors.

Box 2: taxable amount of the distribution reported by the payer. Thus, the retirement plan or annuity has determined what the amount to include in income is. This amount should be reported on line 4b or 5b of the Form 1040.

Box 3:  Capital gain

Box 4: Federal income tax withheld

Box 5: Employee contributions/Designated ROTH contributions or insurance premiums

Form 1099-R - distribution from retirement accounts

When you take out money from your retirement accounts, you receive form 1099-R from the payer. Here we present the basic idea on the codes on 1099-R.

You might receive distributions from your retirement accounts for various reasons but some of the reasons are listed below. The income from retirement account falls under ordinary income on form 1040 line 4b or 5b.

Loans against pension plans

Annuity and pension payments

Account rollovers – example, from one brokerage to another

Early retirement account distributions

What are the boxes on form 1099-R

Box 1: total amount of distribution from a retirement plan or annuity, this is the gross amount of dollars you received from the plan. It may be taxable or not depending on many factors.

Box 2: taxable amount of the distribution reported by the payer. Thus, the retirement plan or annuity has determined what the amount to include in income is. This amount should be reported on line 4b or 5b of the Form 1040.

Box 3:  Capital gain

Box 4: Federal income tax withheld

Box 5: Employee contributions/Designated ROTH contributions or insurance premiumsBox 6: Net unrealized appreciation in employer’s securities

Box 7: type of distribution the taxpayer took as known by the payer. 

o Code 1: Early distribution, no known exception

o Code 2: Early distribution, exception applies

o Code 3: Disability

o Code 4: Death

o Code 7: Normal distribution

o Code 8: Corrective refunds taxable in current year

o Code G: Direct Rollover to a qualified plan, 403(b), governmental 457(b) or IRA

o Code L: Loan treated as a distribution

o Code M: Qualified Plan loan offset —Early distribution, no known exception (in most cases, under age

o 59½).

o Code: 2: Early distribution, exception applies (under age 59½).

o Code: 3: Disability.

o Code 4: Death.

o Code 5: Prohibited transaction.

o Code 6: Section 1035 exchange (a tax-free exchange of life insurance, annuity, qualified long-term care insurance, or endowment contracts).

o Code 7: Normal distribution.

o Code 8: Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2022.

o Code 9: Cost of current life insurance protection.

o Code A: May be eligible for 10-year tax option (see Form 4972).

o Code B: Designated Roth account distribution.

o Note: If code B is in box 7 and an amount is reported in box 11, see the Instructions for Form 5329.

o Code C: Reportable death benefits under section 6050Y.

o Code D: Annuity payments from nonqualified annuities that may be subject to tax under section 1411.

o Code E: Distributions under Employee Plans Compliance Resolution System (EPCRS). 

Box 8: Other

Box 9a: Percentage of total distribution

Box 9b: Total employee contributions

Box 10: Amount allowable to IRR within five years

Box 11: 1st year of designated Roth contributions

Box 12: FATCA filing requirement

Box 13: Date of payment

Box 14: State tax withheld

Box 15: State/Payer’s state no.

Box 16: State distribution

Box 17: Local Tax Withhold

Box 18: Local Distribution

Box 6: Net unrealized appreciation in employer’s securities

Box 7: type of distribution the taxpayer took as known by the payer. 

o Code 1: Early distribution, no known exception

o Code 2: Early distribution, exception applies

o Code 3: Disability

o Code 4: Death

o Code 7: Normal distribution

o Code 8: Corrective refunds taxable in current year

o Code G: Direct Rollover to a qualified plan, 403(b), governmental 457(b) or IRA

o Code L: Loan treated as a distribution

o Code M: Qualified Plan loan offset —Early distribution, no known exception (in most cases, under age 59½).

o Code: 2: Early distribution, exception applies (under age 59½).

o Code: 3: Disability.

o Code 4: Death.

o Code 5: Prohibited transaction.

o Code 6: Section 1035 exchange (a tax-free exchange of life insurance, annuity, qualified long-term care insurance, or endowment contracts).

o Code 7: Normal distribution.

o Code 8: Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2022.

o Code 9: Cost of current life insurance protection.

o Code A: May be eligible for 10-year tax option (see Form 4972).

o Code B: Designated Roth account distribution.

o Note: If code B is in box 7 and an amount is reported in box 11, see the Instructions for Form 5329.

o Code C: Reportable death benefits under section 6050Y.

o Code D: Annuity payments from nonqualified annuities that may be subject to tax under section 1411.

o Code E: Distributions under Employee Plans Compliance Resolution System (EPCRS). 

Box 8: Other

Box 9a: Percentage of total distribution

Box 9b: Total employee contributions

Box 10: Amount allowable to IRR within five years

Box 11: 1st year of designated Roth contributions

Box 12: FATCA filing requirement

Box 13: Date of payment

Box 14: State tax withheld

Box 15: State/Payer’s state no.

Box 16: State distribution

Box 17: Local Tax Withhold

Box 18: Local Distribution


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