Instructions For Forms 1099-R And 5498 - Distributions From Pensions, Annuities, Retirement Or Profit-Sharing Plans, Iras, Insurance Contracts, Etc. And Ira Contribution Information - 2016 Page 17
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24Guide to Distribution Codes
*Used with code ...(if
Distribution Codes
Explanations
applicable)
7—Normal distribution.
Use Code 7: (a) for a normal distribution from a plan, including a traditional IRA,
A, B, D, or K
section 401(k), or section 403(b) plan, if the employee/taxpayer is at least age 59
1
1
; (b) for a Roth IRA conversion if the participant is at least age 59
; and (c) to
2
2
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
2008-29_IRB/ar19.html. Generally, use Code 7 if no other code applies. Do not
use Code 7 for a Roth IRA.
1
Note: Code 1 must be used even if a taxpayer is 59
or older and he or she
2
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.
8—Excess contributions plus earnings/excess
Use Code 8 for an IRA distribution under section 408(d)(4), unless Code P
1, 2, 4, B, J, or K
deferrals (and/or earnings) taxable in 2016.
applies. Also use this code for corrective distributions of excess deferrals, excess
contributions, and excess aggregate contributions, unless Code P applies. See
Corrective Distributions, earlier, and IRA Revocation or Account Closure, earlier,
for more information.
9—Cost of current life insurance protection.
Use Code 9 to report premiums paid by a trustee or custodian for current life or
None
other insurance protection. See the instructions for box 2a, earlier, for more
information.
A—May be eligible for 10-year tax option.
Use Code A only for participants born before January 2, 1936, or their
4 or 7
beneficiaries to indicate the distribution may be eligible for the 10-year tax option
method of computing the tax on lump-sum distributions (on Form 4972, Tax on
Lump-Sum Distributions). To determine whether the distribution may be eligible
for the tax option, you need not consider whether the recipient used this method
(or capital gain treatment) in the past.
B—Designated Roth account distribution.
Use Code B for a distribution from a designated Roth account. But use Code E
1, 2, 4, 7, 8, G, L, P, or U
for a section 415 distribution under EPCRS (see Code E) or Code H for a direct
rollover to a Roth IRA.
D—Annuity payments from nonqualified annuities
Use Code D for a distribution from any plan or arrangement not described in
1, 2, 3, 4, or 7
and distributions from life insurance contracts
sections 401(a), 403(a), 403(b), 408, 408A, or 457(b).
that may be subject to tax under section 1411.
E—Distributions under Employee Plans
See Distributions Under Employee Plans Compliance Resolution System
None
Compliance Resolution System (EPCRS).
(EPCRS), earlier.
F—Charitable gift annuity.
See Charitable gift annuities, earlier.
None
G—Direct rollover and direct payment.
Use Code G for a direct rollover from a qualified plan, a section 403(b) plan, or a
4, B, or K
governmental section 457(b) plan to an eligible retirement plan (another qualified
plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA). See
Direct Rollovers, earlier. Also use Code G for a direct payment from an IRA to an
accepting employer plan, and for IRRs that are direct rollovers.
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 a designated Roth account
Use Code H for a direct rollover of a distribution from a designated Roth account
4
distribution to a Roth IRA.
to a Roth IRA.
J—Early distribution from a Roth IRA.
Use Code J for a distribution from a Roth IRA when Code Q or Code T does not
8 or P
apply. But use Code 2 for an IRS levy and Code 5 for a prohibited transaction.
K—Distribution of traditional IRA assets not
Use Code K to report distributions of IRA assets not having a readily available
1, 2, 4, 7, 8, or G
having a readily available FMV.
FMV. These assets may include:
stock, other ownership interest in a corporation, short- or long-term debt
obligations, not readily tradable on an established securities market;
ownership interest in a limited liability company (LLC), partnership, trust, or
similar entity (unless the interest is traded on an established securities market);
real estate;
option contracts or similar products not offered for trade on an established
option exchange; or
other asset that does not have a readily available FMV.
-17-
Instructions for Forms 1099-R and 5498 (2016)
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