Coding of 1099R for Substantially Equal Perodic Payments post 59 1/2

[Guest Fishchick]

Is it proper to start reporting IRA distributions paid out after age 59 1/2 as code 7 (rather than code 2), even if they are part of a series of Substantially Equal Periodic Payments, which have been received for less than 5 years?

[Appleby]

According to the IRS instructions for filing 1099-R, distributions made on or after the individual attains age 59 ½ must be coded as normal (code 7). This includes amounts that are part of a 72(t) payment.

An exception to code 7 would be a direct rollover.

[Guest franky]

One exception: If substantially equal periodic payments are modified before the end of 5-year period, use code 1, even if individual is age 59 1/2.