Question

On form 1099-R Box 7 is marked 7D. How does that translate ?

Forum|Forum|7 years ago
June 6, 2019
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TurboTax Deluxe Online

Employee

Box 7 is used to report income to you. The different codes within box 7 tell what the tax treatment of any distribution amounts should be. 7 is the code for Normal Distribution (which means it was distributed to taxpayer after age 59.5). D is the new 'nonqualified annuity distribution code'.

The taxable amount of the distribution should still be indicated in Box 2a based on the differing rules depending on when the annuity was purchased.

I have listed below, all of the possible codes that you could see on your 1099-R, just in case you have any follow up questions.

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1

Early distribution, no known exception (in most cases, under age 59 1/2). (See Form 5329) For a rollover to a traditional IRA of the entire taxable part of the distribution, do not file Form 5329. See the instructions for Form 1040 / Form 1040A.

2

Early distribution, exception applies (under age 59 1/2)

3

Disability

4

Death

5

Prohibited transaction

6

Section 1035 exchange (a tax-free exchange of life insurance, annuity, or endowment contracts)

7

Normal distribution

8

Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2014

9

Cost of current life insurance protection

A

May be eligible for 10-year tax option. (See Form 4972)

B

Designated Roth account distribution.

D

Annuity payments from nonqualified annuities and distributions from life insurance contracts that may be subject to tax under section 1411.

E

Distributions under Employee Plans Compliance Resolution System (EPCRS).

F

Charitable gift annuity.

G

Direct rollover of a distribution (other than a designated Roth account distribution) to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA.

H

Direct rollover of a designated Roth account distribution to a Roth IRA.

J

Early distribution from a Roth IRA, no known exception (in most cases, under age 59 1/2).

L

Loans treated as deemed distributions.

N

Recharacterized IRA contribution made for 2014 and recharacterized in 2014.

P

Excess contributions plus earnings/excess deferrals taxable in 2013.

Q

Qualified distribution from a Roth IRA.

R

Recharacterized IRA contribution made for 2013 and recharacterized in 2014.

S

Early distribution from a SIMPLE IRA in first 2 years, no known exception (under age 59 1/2).

T

Roth IRA distribution, exception applies.

U

Dividend distributed from ESOP under section 404(k).

W

Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements.

C

cgm5443

When the Gross Distribution is $10852.25 and the Taxable Amount is 18.90 why does the taxable amount of my social security increase

C

cgm5443

gross distribution is my own money being retutned

R

Russ8

In TurboTax I have to mark it as "7" or "D" what should I use for the 1099-R that is marked "7D" ?

D

dmertz

Employee

TurboTax's 1099-R form has two box 7 drop-downs. Select "7" in one and "D" in the other.

T

Tethy-_1930

The 2020 1099-R Block 7does not have a 2nd drop down block. There is only one block and the 7D is there. On turbo tax 2020, the 2nd line down has different codes. D is for Death. The D in block 7 on the 1099 now is for disability, which applies to me but the block on Turbo Tax will only take one character.