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January 28, 2025
Question

what is my taxable amount for box 2 disb code 7?

  • January 28, 2025
  • 1 reply
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    January 28, 2025

    Distribution Code 7 is a normal distribution, which indicates that you are eligible to receive the distribution with no penalties.  If your custodian knows the taxable amount, they will have it in Box 2- otherwise it depends on the type of account and if you have any basis in the account.  TurboTax will ask follow-up questions to help you determine the amount.