BenefitsLink logo
EmployeeBenefitsJobs logo

Search the News

Featured Jobs
Executive Director
Retirement Plan Account Manager
Onboarding/New Client Implementation Associate
Retirement Plan Administrator II
Director of Operations
401(k)/ESOP Administrator
Retirement Plan Field Representative
Vice President, National Sales
New Business Consultant
ESOP Administrator
Search all jobs
Get the BenefitsLink app for iPhone and iPad LinkedIn

Jump to content


Distribution Code 2 - reported on 1099-R

  • Please log in to reply
1 reply to this topic

#1 Jilliandiz


    Registered User

  • Registered
  • 173 posts

Posted 09 April 2004 - 10:17 AM

What does distribution code 2 mean on 1099-R.
I know it means early distribution...but what's the exception? I can't figure it out.




    Registered User

  • Sitewide Moderator
  • 2,113 posts

Posted 09 April 2004 - 10:38 AM

Some of the most common uses of code 2 include:

1) Roth IRA conversion.
2) Part of a series of substantially equal periodic payments made for the life of the taxpayer.
3) Distributions after separation of service for someone age 55.

Sections 72(q), (t) and (v) provide other exceptions from the 10% tax as well.
...but then again, What Do I Know?