Educational tool · IRS form mechanics

1099-R Box 7 Decoder

Choose a single distribution code to see what the payer is reporting—and what the code does not decide.

Source: IRS Instructions for Forms 1099-R and 5498 (2026) · updated Jun 24, 2026

Code shown in Box 7

A form can show valid code combinations. Decode each character, then read the meanings together.

Select a code to read its general IRS meaning and the question it leaves open.

Educational tool — not tax adviceMeanings follow the current IRS instructions. Your form and facts may require professional review.

Read the current IRS Instructions for Forms 1099-R and 5498.

Static reference

All Box 7 codes

This table remains available without JavaScript and includes every code in the IRS 2026 guide.

2026 Form 1099-R Box 7 distribution codes and conservative tax notes
Code	IRS category	What it usually means for your taxes
1	Early distribution, no known exception The payer is reporting an early distribution and does not know that an exception applies.	The code does not settle whether you can claim an exception. The taxable amount, your records, and the exception rules still control.
2	Early distribution, exception applies The payer knows that an exception to the early-distribution additional tax applies.	An exception to an additional tax does not necessarily make the distribution free from regular income tax.
3	Disability The payer is reporting a distribution associated with disability under the applicable federal definition.	The code does not establish the taxable amount or replace the documentation required for the disability rule.
4	Death The payer is reporting a payment to a beneficiary, estate, or trust after the participant’s death.	Beneficiary, account, and distribution rules still determine the income-tax result.
5	Prohibited transaction The payer is reporting a prohibited transaction involving an IRA; the IRS instructions say the account is no longer an IRA.	This code signals a consequential account-status issue. It does not calculate the resulting income or additional taxes.
6	Section 1035 exchange The payer is reporting an exchange of an eligible insurance, annuity, endowment, or long-term-care contract under section 1035.	The code reports the exchange treatment used by the payer. Contract facts still determine whether every requirement was met.
7	Normal distribution The payer is reporting a normal distribution, or another distribution for which the IRS instructions direct use of code 7.	“Normal” does not mean tax-free. Read Boxes 1, 2a, 2b, 5, and the account or contract records together.
8	Current-year corrective distribution The payer is reporting a corrective distribution of excess contributions, deferrals, or related earnings taxable in the form year.	The contribution type and timing determine what is taxable and where it is reported.
9	Current life-insurance protection cost The payer is reporting premiums paid by a trustee or custodian for current life or other insurance protection.	Use the other form boxes and plan records to determine the amount included in income.
A	May qualify for the 10-year tax option The payer is flagging a lump-sum distribution that may be eligible for the special 10-year tax option.	Eligibility is limited. The code is a signal to test the Form 4972 requirements, not a conclusion that the option applies.
B	Designated Roth account distribution The payer is reporting a distribution from a designated Roth account.	Whether the distribution is qualified, taxable, or rollable depends on the accompanying code and Roth-account facts.
C	Reportable death benefits The payer is reporting death-benefit payments under section 6050Y.	This code identifies the reporting category. It does not determine the recipient’s taxable amount.
D	Nonqualified annuity or life-insurance payment The payer is reporting a payment from a nonqualified annuity or life-insurance arrangement that may be relevant under section 1411.	Code D commonly appears with a numeric code. It does not by itself say that net investment income tax is owed.
E	EPCRS corrective distribution The payer is reporting a corrective distribution under the Employee Plans Compliance Resolution System.	The correction documents and other form boxes determine the reporting treatment.
F	Charitable gift annuity The payer is reporting a payment from a charitable gift annuity.	A payment can contain components with different tax treatment. The code alone does not allocate them.
G	Direct rollover or direct payment The payer is reporting a direct rollover or another direct payment for which the IRS instructions specify code G.	A direct rollover can still create current income when moved to a Roth arrangement. Confirm the receiving account and accompanying codes.
H	Designated Roth direct rollover The payer is reporting a direct rollover from a designated Roth account to a Roth IRA.	The code describes the transfer path; it does not establish the basis or qualified-distribution status of later withdrawals.
J	Early Roth IRA distribution, no known exception The payer is reporting an early Roth IRA or Roth SIMPLE IRA distribution when code Q or T does not apply.	Roth ordering rules and your contribution and conversion history determine whether any amount is taxable.
K	Traditional IRA assets without readily available value The payer is reporting a distribution of traditional IRA assets that do not have a readily available fair market value.	Valuation and the accompanying code matter. Code K does not mean the asset has no value.
L	Loan treated as a deemed distribution The payer is reporting a plan loan treated as a distribution under section 72(p).	This is not the code for a plan-loan offset. The taxable amount and any exception require separate review.
M	Qualified plan-loan offset The payer is reporting a qualified plan-loan offset, generally tied to severance from employment or plan termination.	A rollover deadline may apply. The code does not establish that a rollover occurred.
N	Current-year IRA recharacterization The payer is reporting a current-year IRA contribution recharacterized in the same year.	The code identifies the transfer. Contribution limits, earnings, and reporting still depend on the underlying records.
P	Prior-year corrective distribution The payer is reporting excess contributions, deferrals, or related earnings taxable in a prior year.	The form year and the year named by the correction rules can differ. Check whether an earlier return needs attention.
Q	Qualified Roth IRA distribution The payer knows the Roth IRA five-year holding period and an age, death, or disability condition are met.	Code Q generally reports a qualified Roth IRA distribution, but the form should still be reconciled with your records.
R	Prior-year IRA recharacterization The payer is reporting a prior-year IRA contribution recharacterized in the form year.	The code identifies timing; it does not calculate any earnings adjustment or contribution-limit consequence.
S	Early SIMPLE IRA distribution in first two years The payer is reporting an early SIMPLE IRA distribution during the first two years with no known exception.	The first-two-years rule can change the additional tax. Confirm participation dates and any exception.
T	Roth IRA distribution, exception applies The payer knows an age, death, or disability condition is met but does not know whether the five-year holding period is met.	The five-year record determines whether the distribution is qualified; code T does not resolve it.
U	ESOP dividends The payer is reporting dividends distributed from an employee stock ownership plan under section 404(k).	The IRS instructions say these payments are not eligible rollover distributions.
W	Qualified long-term-care charge or payment The payer is reporting an excludable charge or payment for qualified long-term-care insurance under a combined arrangement.	The code identifies the reported charge. It does not describe other contract distributions.
Y	Qualified charitable distribution The payer is reporting a direct IRA payment to a charitable organization that the taxpayer intends to treat as a qualified charitable distribution.	For 2026, code Y is optional and must appear with code 4, 7, or K. Eligibility still depends on the QCD rules.