Form 1099-R Distribution Code Calculator 2026
Decode Form 1099-R Box 7 codes. Calculate federal tax, 10% early withdrawal penalty, state tax, and net distribution for all 1099-R codes: 1, 2, 3, 4, 7, G, H, P, R, T.
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Federal Income Tax
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10% Early Withdrawal Penalty
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State Tax
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Net Distribution to You
Distribution Code Analysis
1099-R Distribution Code Reference Guide
| Code | Description | Penalty? | Taxable? |
|---|---|---|---|
| 1 | Early distribution, no known exception | Yes β 10% | Yes |
| 2 | Early distribution, exception applies | No | Yes |
| 3 | Disability | No | Yes |
| 4 | Death / beneficiary distribution | No | Yes |
| 7 | Normal distribution (age 59Β½+) | No | Yes |
| G | Direct rollover to qualified plan/IRA | No | No |
| H | Direct rollover to Roth IRA (conversion) | No | Conversion taxable |
| P | Excess contributions returned β prior year | Depends on age | Earnings taxable |
| R | Recharacterization of contribution | No | No |
| T | Roth β exception applies | No | Depends on qualified status |
Sources and References (click to expand)
- IRS Form 1099-R Instructions β Distributions from Pensions, Annuities, Retirement Plans
- IRC Β§72(t) β Penalty Tax on Early Distributions from Qualified Retirement Plans
- IRC Β§402(c) β Rollover of Qualifying Distributions
- IRS Publication 590-B β Distributions from Individual Retirement Arrangements (IRAs)
- IRS Publication 575 β Pension and Annuity Income
Extended
Multi-Distribution 1099-R Aggregator + Code Chart
Input multiple 1099-R forms, aggregate tax by code type, and view bar chart of tax by distribution code
Add multiple 1099-R forms to see aggregate tax across all distributions.
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| Source | Code | Gross | Taxable | Fed Tax | Penalty | State | Net |
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Bar chart of tax owed vs net distribution by code type across all added 1099-R forms.
Substantially Equal Periodic Payments (SEPP) β avoid the 10% penalty by taking distributions based on life expectancy. Code 2 applies.
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120% of mid-term AFR; check IRS Rev Rul monthly Frequently Asked Questions
What does Box 7 distribution code mean on Form 1099-R?
Box 7 on Form 1099-R contains a code that tells the IRS and you how to tax the distribution. Code 1 = early distribution with no known exception (10% penalty applies). Code 2 = early distribution, but an exception applies (no penalty). Code 3 = disability. Code 4 = death distribution to beneficiary. Code 7 = normal distribution (age 59Β½ or older). Code G = direct rollover to another qualified plan or IRA (not taxable). Code H = direct Roth rollover. Code P = excess contributions returned for prior year. Code R = recharacterization of IRA contribution.
What are the exceptions to the 10% early withdrawal penalty (Code 2)?
IRC Β§72(t) lists exceptions to the 10% penalty: (1) Substantially equal periodic payments (SEPP/72t). (2) Separation from service at age 55 or older (age 50 for qualified public safety employees). (3) Death or disability. (4) Unreimbursed medical expenses exceeding 7.5% of AGI. (5) Health insurance premiums while unemployed. (6) Higher education expenses. (7) First-time home purchase (up to $10,000 lifetime from IRA). (8) IRS levy. (9) Reservist distributions. (10) Qualified disaster distributions. Use Code 2 when an exception applies; otherwise Code 1.
How are distributions from a Roth IRA taxed?
Qualified Roth IRA distributions are completely tax-free. To be qualified, the Roth must have been open at least 5 years (the 5-year rule starts January 1 of the tax year of first contribution) AND you must be age 59Β½, disabled, deceased, or using up to $10,000 for a first home. Non-qualified distributions are subject to ordering rules: contributions come out first (tax-free and penalty-free), then conversions (subject to the 5-year holding period for each conversion), then earnings (taxable and subject to 10% penalty unless an exception applies). Box 7 codes T or J indicate Roth distributions.
What is a Code G rollover distribution and how is it reported?
Code G indicates a direct rollover β the funds moved directly from one qualified plan to another (e.g., 401k to IRA) without the taxpayer receiving the money. Direct rollovers are NOT taxable and NOT subject to 20% mandatory withholding (unlike indirect rollovers). The full amount is reported on Form 1040 but then excluded. An indirect rollover (where you receive the check) is subject to 20% mandatory withholding, and you have 60 days to roll over the full amount (including the 20% withheld). If you only roll over the net amount, the 20% retained is treated as a distribution.
How is state tax calculated on 1099-R distributions?
State taxation of retirement distributions varies widely. Some states exempt all retirement income (IL, MS, PA for most retirement income, NH). Others exempt Social Security and pension but tax IRA/401k distributions (most states). A few tax all retirement income like ordinary wages (CA, VT, OR, MN, RI). Some have partial exemptions based on age or income. This calculator applies a state rate you enter, but consult your state DOR for exact rules. Military pensions are exempt in many states. Railroad retirement benefits have special federal treatment under the Railroad Retirement Tax Act.