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What factors determine the distribution codes on Form 1099R's?


Guest pnhem

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I need help on distribution codes on Form 1099R's. What date is used to determine the distribution code, the distribution date or the date the participant separated from service. This is regarding to the additional 10% tax that is imposed by IRC 72(t). IRC Section 402(a) stated that distributions are taxed in the distributing year while 72(t) talked about when distribution is excluded from additional 10% tax.

Posted
Originally posted by pnhem

I need help on distribution codes on Form 1099R's.  What date is used to determine the distribution code, the distribution date or the date the participant separated from service.  This is regarding to the additional 10% tax that is imposed by IRC 72(t).  IRC Section 402(a) stated that distributions are taxed in the distributing year while 72(t) talked about when distribution is excluded from additional 10% tax.

The Forum for this question of pertaining to retirement/pension plan, not the section 125 plan.
Posted

If you are looking at the age 59 1/2 rule to avoid the early distribution rules; the date of distribution governs.

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