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What do the distribution codes in Box 7 of my 1099-R mean? CodeDefinition1Early distribution, no known exception (in most cases, under age 59½).2Early distribution, exception applies (under age 59½).3Disability26 more rows
You'll most likely report amounts from Form 1099-R as ordinary income on line 4b and 5b of the Form 1040. The 1099-R form is an informational return, which means you'll use it to report income on your federal tax return. If the form shows federal income tax withheld in Box 4, attach a copy ? Copy B?to your tax return.
The distributions are reported to the taxpayer on Form 1099-R. The taxpayer then reports the amount of the charitable distribution on Form 1040 on the line for IRA distributions and enter zero for the taxable amount. QCD should then be entered next to this line. A QCD is not subject to withholding.
You must file form 5329 on your federal tax return for the year that the full RMD was not taken. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall.
"T" informs the IRS that the holding period was not met, but the distribution is exempt from the penalty for early withdrawal because it has been paid to a beneficiary. The initial withdrawn contributions are tax-free; however, distributed earnings are taxable.