U.S. · Form 1099-R box 7a
1099-R code A.
Who code A is for, what it pairs with, and what it does not promise.
Code A is only for participants born before January 2, 1936, or their beneficiaries. It tells the IRS and the recipient that a lump-sum distribution may be eligible for the 10-year tax option on Form 4972. It is used with code 4 or code 7, never alone, and it is a flag rather than a finding: the payer does not have to check whether you actually qualify.
Look it up
Result
Code A and the boxes around it
| Item | What the IRS instructions say |
|---|---|
| Who code A is for | Participants born before January 2, 1936, or their beneficiaries. |
| What it signals | The distribution may be eligible for the 10-year tax option method of computing the tax on lump-sum distributions, which is figured on Form 4972, Tax on Lump-Sum Distributions. |
| Does the payer verify eligibility? | No. To decide whether to use code A, the payer need not consider whether the recipient used this method, or capital gain treatment, in the past. |
| Codes it can be paired with | Table 1 lists 4 or 7. For a normal distribution from a qualified plan that qualifies for the 10-year tax option the instructions say to enter codes 7 and A. |
| Box 3 capital gain | For lump-sum distributions from qualified plans only, the payer enters in box 3 the amount in box 2a eligible for the capital gain election for participants born before January 2, 1936 (or their beneficiaries). Box 3 is not completed for a direct rollover. |
| Direct rollovers | Code A is not part of a direct rollover report, which uses code G (with 4 for a nonspouse beneficiary). |
How narrow this code is
The birth-date cutoff means everyone code A can apply to was born on or before January 1, 1936, so by the end of 2026 they are at least 90 years old. In practice you will see it mostly on distributions to beneficiaries or on late distributions from old plans. If your form shows code A and you were born later, ask the payer to correct it, because the IRS compares codes with what you report.
Code A is not a guarantee
The instruction to the payer is deliberately loose: use code A to indicate the distribution may be eligible. Whether you can actually use Form 4972 depends on the rules for that form, including that the distribution is a qualifying lump sum. The form and its instructions, linked below, are the place to check that. This page only explains the code.
Where code A connects to box 3
Code A and box 3 often travel together. Box 3 is the capital gain portion of box 2a for pre-1974 participation. The payer figures it by taking the total taxable amount and multiplying by months of active participation before 1974 over total months of active participation. Our box 3 page has a calculator for that fraction.
Worked example
A plan pays Margaret’s beneficiary a lump sum after her death. She was born in 1934. If the payer concludes the distribution may be eligible for the 10-year tax option, box 7a shows 4 and A in the form’s allowable pairing (code 4 for a death distribution to a beneficiary, A for the option flag). The beneficiary then reads the Form 4972 instructions to see whether the option is available and whether it lowers the tax.
Sources
- Instructions for Forms 1099-R and 5498 (2026): Table 1 distribution codes and the instructions for the 1099-R boxes covered above. Read November 2, 2026.
IRS page last reviewed June 23, 2026. This is the 2026 edition of the instructions, written for forms filed for 2026 distributions; the IRS revises it each year, so check the current edition before relying on a code.
Frequently asked questions
What does code A mean on a 1099-R?
Code A means the distribution may be eligible for the 10-year tax option for computing the tax on a lump-sum distribution, which is figured on Form 4972.
Who can have code A on a 1099-R?
Only participants born before January 2, 1936, or their beneficiaries, according to the IRS instructions.
What codes go with code A?
The IRS allowable combinations for code A are 4 or 7. A normal distribution from a qualified plan that qualifies is reported with codes 7 and A.
Does code A mean I qualify for the 10-year tax option?
No. It means the distribution may be eligible. The payer need not consider whether you used the method or capital gain treatment before, so check the Form 4972 instructions yourself.
Is code A used for a direct rollover?
No. A direct rollover from a qualified plan to an eligible retirement plan is reported with code G, and with code 4 as well if made by a nonspouse designated beneficiary.
Not tax or legal advice
This page summarizes IRS instructions to payers and is not tax, legal or financial advice. A CPA, enrolled agent or the payer can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.