1040-US: Form 1099-R, Box 7

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Below are the instructions for the 1099-R, Box 7 data entry and what each code means

Codes

  • 8: Per IRS instructions, distributions with code 8 that are not from an IRA, SEP, or SIMPLE are reported on Form 1040, line 1, Wages and Salaries.
  • A: Use code A if filing Form 4972 - Lump-Sum Distribution.
  • D: If Form 1099-R has distribution code D along with another code, enter the other distribution code here and enter X in the Nonqualified annuity (Code D) box.
  • F: Distributions with code F report amounts in Box 3, Capital gain on Form 8949 as "Form 1099-R Charitable Gift Annuity."
  • L: If Form 1099-R has distribution code L along with another code, enter the other distribution code here and enter X in the Loan treated as distribution (Code L) box.
  • P: If a client receives a Form 1099R in the current tax year with a code P, it should be reported on the client's previous year's tax return.
  • T: When the distribution code is T (Roth IRA distribution, exception applies), complete the fields in 1099R as follows.
    1. Enter the gross distribution in the Gross distribution field.
    2. Leave the Taxable amount field blank.
    3. Mark the Taxable amount not determined checkbox.
    4. Leave the IRA\SEP\SIMPLE field blank.
    5. If applicable, mark the Contributions (or conversion) made 5 or more years ago field on the 1099R-3 screen.

Multiple codes

If a 1099-R has more than one distribution code in Box 7, you'll need to determine which code should be applied to give the correct tax treatment, and then only enter that code. 

If the two codes require different tax treatments, you will need to add another 1099R screen to use the separate treatment. You will not be able to enter both codes in the Distribution code field.

Per Form 1099-R Instructions, "when applicable, enter a numeric and an alpha code. For example:

  • when using code P for a traditional IRA distribution under section 408(d)(4), you must also enter Code 1, if it applies.
  • For a normal distribution from a qualified plan that qualifies for the 10-year tax option, enter Codes 7 and A.
  • For a direct rollover to an IRA or a qualified plan for the surviving spouse of a deceased participant, or on behalf of a non-spouse designated beneficiary, enter Codes 4 and G (Codes 4 and H if from a designated Roth account to a Roth IRA).

If two or more distribution codes are not valid combinations, you must file more than 1 Form 1099-R."

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