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Did your custodian code your 1099-R correctly?

If you completed a direct rollover, Box 7 should be code G. Custodians regularly miscode rollovers as early distributions (code 1) — which would cost you 10% penalty + full income tax on the distribution. Check yours in 5 seconds.

For a direct rollover, the expected code is G.

Common rollover-related codes

  • 1Early distribution, no known exception
  • 2Early distribution, exception applies
  • 4Death distribution
  • 7Normal distribution (age 59½+)
  • GDirect rollover and rollover contribution
  • HDirect rollover of designated Roth account
  • BDesignated Roth account distribution
  • LLoans treated as distributions

Where to find Box 7 on your 1099-R

Form 1099-R is mailed by your custodian in late January. Box 7 is labeled “Distribution code(s)” and contains one or two letters/numbers. For a direct rollover, the expected code is G.

If your 1099-R hasn't arrived yet, the custodian also makes it available in your online account under “Tax forms” or “Documents” starting around January 31 each year.

This tool provides educational information about IRS Form 1099-R coding. It is not tax advice for your specific situation. If your 1099-R appears to be miscoded, consult a CPA before filing.