Question

10 99 Box 7 Distribution codes 1 or 2

Forum|Forum|6 years ago
February 20, 2020
1 reply
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To whom it may concern,

In 2018 on 1099 box 7 code 2 Early distribution, exception applies (under age 59 1/2) but in 2019 on my 1099 box 7 code 1 Early distribution, no known exception (in most cases, under age 59 1/2) was entered.

What is the difference between code 1 and 2 other than (1) no known exception and (2) exception applies?

What exception(s)

M

MinhT1

Exceptions here mean exceptions to the early withdrawal penalty.

Whether your 1099-R box 7 is coded 1 or 2 depends on whether the reason for the withdrawal is known to the plan administrator. Even if code is 1, the early withdrawal penalty will be waived if you qualify for an exception.

Exceptions for IRAs

Exceptions for plans other than IRAs

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