Distribution Codes

Withdrawals made on an IRA can be a partial or total. In order to report activity to the IRS accurately, Portico requires withdrawal distribution codes for every withdrawal transaction.

Some types of distributions support partial and total distribution codes. When a member is closing an IRA (no IRA share and/or certificates with a balance remaining), use a Total Distribution Code on the financial transaction. If an IRA balance will remain after the financial transaction is completed, use a Partial Distribution Code. The following withdrawal distribution codes are supported on Portico.

Traditional IRA

Code	Description
1	Early distribution, no exception, age < 59 1/2, when codes 2, 3 or 4 do not apply
2	Early distribution, age < 59 1/2, for conversions, equal periodic payments or IRS levy
3	Disability
4	Account holder deceased
7	Normal distribution, age = or > 59 1/2
8	Remove excess contribution, current year, age = or > 59 1/2
81	Remove excess contribution, current year, age < 59 1/2
G	Direct rollover and direct payment
N	Recharacterization current year
P	Remove excess contribution, previous year, age = or > 59 1/2
P1	Remove excess contribution, previous year, age < 59 1/2
R	Recharacterization previous year
TO	Transfer Out*
IT	Internal Transfer
SW	State withholding correction
FC	Fee correction
FW	Federal withholding correction

*Indicates distributions transferred directly to another financial institution, not transfers between IRA accounts at your credit union.

Roth IRA

Code	Description
J	Early distribution, no exception, age < 59 1/2
T	Exception applies
Q	Qualified
8J	Remove excess contribution, current year, age < 59 1/2
8T	Remove excess contribution, current year, age = or > 59 1/2
N	Recharacterization current year
PJ	Remove excess contribution, previous year, age < 59 1/2
PT	Remove excess contribution, previous year, age = or > 59 1/2
R	Recharacterization previous year
TO	Transfer Out*
IT	Internal Transfer
SW	State withholding correction
FC	Fee correction
FW	Federal withholding correction

*Indicates distributions transferred directly to another financial institution, not transfers between IRA accounts at your credit union.

Coverdell ESA

Code	Description
1	Normal distribution
2	Remove excess contrib curr year
3	Remove excess contrib prior year
4	Disability
5	Account holder deceased
NM	Normal distribution - not valid after November 2010
EC	Remove excess contributions - not valid after November 2010
TO	Transfer Out*
IT	Internal Transfer

*Indicates distributions transferred directly to another financial institution, not transfers between IRA accounts at your credit union.

Payroll withdrawals from an IRA share will not post if a valid IRA withdrawal code for the IRA type is not designated in the Statement Message field on the Payroll Posting Summary window.