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Form 1099-R, Box 7 codes

The following 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 1099-R 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 1099-R 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. 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 1 distribution code in Box 7, you'll need to determine which code should be applied to give the correct tax treatment, then only enter that code.
If the 2 codes require different tax treatments, you'll need to add another
1099R
 screen to use the separate treatment. You won’t be able to enter both codes in the
Distribution code
 field.
Per Form 1099-R Instructions, you can enter a numeric and an alpha code. For example:
  • when using code
    P
     for a traditional IRA distribution under section 408(d)(4), you'll need to 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'll need to file more than 1 Form 1099-R.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual
  • Tax jurisdiction: Federal
  • Subject: Retirement

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