1099(r) codes

L1: 1099(r) codesThis is my fifth year of my level withdrawals. And I turned 60 mid-year.
My administrator sent me two 1099(r) forms. One for the period before I turned 59.5 with a code “2” (substantially equal) and the other for the period after that with a code “7” (normal). I told them that there should only be one 1099(r) and it should be coded with a “2”. They said I was incorrect and that the IRS would “understand.” Should I trust the IRS to be “understanding?” 2006-01-24 12:17, By: taxted, IP: [216.177.3.37]

L2: 1099(r) codesIn the year that you trun 59.5, there would normally betwo 1099s issued.
If the 5 year rule is still in play, make sure that you continue to abide by it – it ends about 365 days x 5years + 2 days after the first distribution.2006-01-24 12:24, By: Gfw, IP: [172.16.1.75]

L2: 1099(r) codesYou can actually take some comfort in that 1099R coding. The “7” is not only a normal distributionconnoting no penalty, but shows that the custodian agrees you have met your SEPP 5 yearrequirement. They are instructed to code a post age 59.5 distribution as a “1” even though it is post age 59.5 if you did not meet the 5 year requirement. The IRS should understand because this follows their own rules for issuing 1099R, and the administrator is correct.2006-01-24 13:24, By: Alan S., IP: [24.116.165.157]