Box 7 - The distribution code in this box informs the IRS what type of distribution you received. 1: Under age 59 1/2, no known exclusion (Generally, refunds), 2: Under Age 59 1/2, known exclusion (Generally, annuitants), 3: Disability, 4: Death Benefit (Lump. When you receive a distribution from a retirement account, pension, annuity, or IRA, the payer issues Form 1099-R to report that distribution to both you and the IRS. One of the most critical pieces of information on this form is found in Box 7: the distribution code. The labels might look confusing at first. You can learn what they mean with some help. This also helps. Form 1099-R is the tax form payers use to report distributions from retirement arrangements such as pensions, annuities, IRAs, and workplace plans.
