U.S. · Tax forms
1099-R distribution codes.
Type the code on your form and see what the IRS says it means.
Code 7 is a normal distribution at 59½ or older, 1 is early with no known exception, 2 is early with an exception, G is a direct rollover, Q is a qualified Roth IRA distribution and Y marks a QCD. On the 2026 form the codes are in box 7a.
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Matching codes
What box 7 is telling you
The payer of an IRA, 401(k), pension or annuity distribution picks one or two distribution codes and prints them in the box 7a of Form 1099-R. Those codes are the IRS's shorthand for why the money left the account. They do not change what you owe by themselves, but they steer how the IRS matches your return: a code 7 at age 62 usually means a plain taxable withdrawal, a code G means a rollover, and a code 1 at age 45 prompts a look at the 10% additional tax. Search the table by code, by word (Roth, rollover, loan) or by situation to see the IRS wording and a plain-English reading.
All distribution codes
| Code | IRS description | What it means for you |
|---|---|---|
| 1 | Early distribution, no known exception | You are under 59½ and the payer does not know of an exception. The 10% additional tax may apply unless you qualify for one yourself. Code 1 is used even for medical, first-home, education and other exception cases when the payer cannot confirm them. |
| 2 | Early distribution, exception applies | You are under 59½ and the payer knows an exception applies, for example a Roth IRA conversion, an IRS levy, separation from service at 55 or later, or substantially equal periodic payments. |
| 3 | Disability | Distribution because you are disabled under section 72(m)(7). |
| 4 | Death | Paid to a beneficiary, estate or trust, whatever the age of the person who died. |
| 5 | Prohibited transaction | A prohibited transaction involved the IRA. The IRS says the account is then no longer an IRA. |
| 6 | Section 1035 exchange | A tax-free exchange of life insurance, annuity, long-term care insurance or endowment contracts. |
| 7 | Normal distribution | You are at least 59½ and no other code applies. Also used for a Roth conversion at 59½ or older and, with Y, for a QCD from a non-inherited IRA. Never used for a Roth IRA distribution. |
| 8 | Excess contributions plus earnings or excess deferrals taxable in 2026 | A corrective distribution of money put in over the limit, taxable for 2026. |
| 9 | Cost of current life insurance protection | Premiums a trustee or custodian paid for current life or other insurance protection. |
| A | May be eligible for 10-year tax option | Only for people born before January 2, 1936, or their beneficiaries. |
| B | Designated Roth account distribution | A distribution from a designated Roth account in a 401(k), 403(b) or 457(b) plan. |
| C | Reportable death benefits under section 6050Y | Payments of reportable death benefits. |
| D | Annuity payments from nonqualified annuities and life insurance contracts that may be subject to section 1411 tax | Annuity payments that may be subject to the 3.8% net investment income tax. |
| E | Distributions under the Employee Plans Compliance Resolution System (EPCRS) | A plan correction under IRS EPCRS rules. |
| F | Charitable gift annuity | A distribution from a charitable gift annuity. |
| G | Direct rollover and direct payment | A direct rollover to an eligible retirement plan or IRA. Not taxable when rolled over correctly. |
| H | Direct rollover of a designated Roth account distribution to a Roth IRA | A direct Roth 401(k), 403(b) or 457(b) rollover into a Roth IRA. |
| J | Early distribution from a Roth IRA, no known exception | A Roth IRA withdrawal before 59½ when code Q or T does not apply. |
| K | Distribution of traditional IRA assets not having a readily available fair market value | Withdrawals of hard-to-value IRA assets such as real estate, LLC or partnership interests. |
| L | Loans treated as deemed distributions under section 72(p) | A plan loan that was not repaid on time and is treated as taxable income. |
| M | Qualified plan loan offset | A plan loan balance cleared against your account, generally after leaving the employer or when the plan ends. |
| N | Recharacterized IRA contribution made for 2026 | A 2026 IRA contribution moved to another type of IRA in 2026. |
| P | Excess contributions plus earnings or excess deferrals taxable in 2025 or a previous year | A corrective distribution taxable in a prior year. The IRS suggests payers tell you the earnings are taxable in the contribution year. |
| Q | Qualified distribution from a Roth IRA | The 5-year holding period is met and you are 59½, disabled or the owner died. |
| R | Recharacterized IRA contribution made for 2025 or a previous year | A prior-year IRA contribution moved to another type of IRA in 2026. |
| S | Early distribution from a SIMPLE IRA in the first 2 years, no known exception | A withdrawal from a SIMPLE IRA in its first two years while under 59½. |
| T | Roth IRA distribution, exception applies | The payer does not know if the 5-year period is met, but you are 59½, disabled or the owner died. |
| U | Dividends distributed from an ESOP under section 404(k) | ESOP dividends passed through to you. They are not eligible rollover distributions. |
| W | Charges or payments for qualified long-term care insurance under combined arrangements | Charges paid from an annuity or life contract to buy long-term care coverage. |
| Y | Qualified charitable distribution (QCD) claimed under section 408(d)(8) | A direct IRA-to-charity transfer you intend to treat as a QCD. The IRS says Y goes first, with code 4, 7 or K. |
Source: IRS Instructions for Forms 1099-R and 5498 (2026), Table 1, Guide to Distribution Codes, retrieved October 26, 2026. The right-hand column is our summary of the IRS wording.
Worked example: three people, three forms
- Dana, age 45, withdraws $15,000 from a traditional IRA to pay off a card. Her form shows 1. No exception is known, so the $15,000 is income and she checks Form 5329 for the 10% additional tax, which would be $1,500 if no exception applies to her.
- Omar, age 62, takes $20,000 from his 401(k). His form shows 7, a normal distribution. The $20,000 is taxable income and there is no early-withdrawal charge.
- Ruth, age 74, sends $5,000 straight from her IRA to a charity. Her form shows Y7, which the IRS describes as a qualified charitable distribution using code Y first with code 7. The QCD part is not taxable if she meets the rules, and she reports it on her return. Use the QCD calculator to check the limit and the offset.
Checking your form before you file
- Match the code to your story. If you did a Roth conversion at 40 and see code 1 instead of 2, ask the payer to confirm; code 2 is the conversion code for people under 59½.
- Rollover with a taxable amount. A code G form with a nonzero taxable amount in box 2a is worth a call to the payer, because a correct direct rollover normally shows $0.
- Roth IRA withdrawals. Code Q is used when the payer knows the 5-year holding period is met and you are 59½, disabled or the owner died. Code T is for the same three situations when the payer does not know about the 5-year period. Code J is for anything else. If you think you qualified, check your own 5-year clock.
- Loans. Codes L and M treat a plan loan as paid out of the plan. Code M is a plan loan offset, usually after leaving the job.
- Two forms for one account. If the payer's codes are not a valid combination, the IRS requires separate 1099-Rs, so two forms in one envelope can be correct.
For the penalty arithmetic see the 401(k) early withdrawal penalty calculator and the Roth conversion calculator.
Sources
Retrieved October 26, 2026.
- IRS, Instructions for Forms 1099-R and 5498 (2026) (retrieved 2026-10-26): Table 1 Guide to Distribution Codes, box 7a to 7d changes, combination rules.
- IRS, About Form 1099-R: current and prior-year forms.
As of October 26, 2026 the list holds codes 1 to 9 and A to Y, with no I, O, V, X or Z.
Frequently asked questions
What does the code in box 7 of a 1099-R mean?
It tells you and the IRS why the money was paid out. Code 7 is a normal distribution at 59½ or older, code 1 is an early distribution with no known exception, code G is a direct rollover and code Q is a qualified Roth IRA distribution. The code decides whether the 10% additional tax is checked and whether the amount is taxable.
What is the difference between 1099-R code 1 and code 2?
Both are for people under 59½. Code 2 means the payer knows an exception applies, such as a Roth conversion, separation from service at 55 or later or substantially equal periodic payments. Code 1 means no known exception, so you may owe the 10% additional tax unless you can claim one yourself on Form 5329.
Why does my 1099-R show two codes, like 7Y or 1P?
The IRS says to enter a numeric and an alpha code when both apply. A QCD from a non-inherited IRA is Y with 7, written as the pair, and a corrective distribution taxable in a prior year can be P with 1. If the codes are not a valid combination the payer must issue more than one 1099-R.
Is a 1099-R with code G taxable?
A direct rollover from a plan to an IRA or another plan is reported with code G and is generally not taxable. The form still arrives and you report the gross amount on your return, with zero taxable if the rollover was done correctly. Box 2a normally shows $0 for a correct direct rollover.
What changed for 2026 on Form 1099-R?
The IRS renumbered box 7 to boxes 7a and 7b, and added box 7c for Trump accounts and box 7d for earnings on excess contributions. The distribution codes are in box 7a on the 2026 form, which you receive in early 2027. On earlier forms they are in box 7.
Can the code on my 1099-R be wrong?
Yes, and it matters. A code 1 where code 2 applies, or a missing code Q on a Roth IRA withdrawal, can lead to an unneeded penalty calculation. Ask the plan or custodian for a corrected form, or explain the exception yourself on Form 5329.
Where is the official list of codes?
Table 1, Guide to Distribution Codes, in the IRS Instructions for Forms 1099-R and 5498. The table on this page was copied from the 2026 edition in October 2026. Older forms use the same letters, but check the instructions for your tax year.
Not tax advice
This page summarizes IRS instructions written for payers and is not tax advice. The payer, a CPA or an enrolled agent can confirm what a code means for your situation. Everything runs in your browser; nothing you enter is sent anywhere.