January 31, 2022

IRS Distribution Codes—Why Did I Receive Two 1099-Rs?

In 2021, the Retirement Funds of Georgia reviewed all distribution codes for pension benefit recipients. Some individuals required an update to their distribution code in Box 7 on the 1099-R. Consequently, these individuals will receive two 1099-R forms for 2021, both of which must be filed according to IRS regulations.

Distribution Codes

Explanations of Box 7 on IRS Form 1099-R

2 – Early Distribution

The member has not reached age 59 ½

In the month that member surpasses age 59 ½ their distribution code will automatically update to 7 – Normal Distribution. A member will receive two 1099-R forms in that tax year.

3 – Disability

Member has been granted a disability retirement by the Board of Commissioners.

The member may not be subject to the 10% additional tax.

4 – Death

Payment to a decedent’s beneficiary or survivor, regardless of the member's age

7 – Normal Distribution

Member is at least 59 ½.