1099-R Code Y

Forum|Forum|6 months ago
December 17, 2025
2 replies
12 views

The IRS has introduced a distribution Code Y to indicate a QCD (and then in October made it non-mandatory, but still available).

Nevertheless, I don't see it in the Screen 13.1 dropdown for box 7.

Does anyone know if Lacerte plans to add this? And will it be a primary code (like Y) or secondary code (like 7Y)?

Lacerte Tax

Best answer by PhoebeRoberts

Lacerte doesn't have any of the new law stuff programmed in yet.

IRS instructions (https://www.irs.gov/instructions/i1099r#en_US_2025_publink1000147723) say:

To report a QCD use code Y with:

Code 7 for a QCD from a non-inherited (normal distribution) IRA,
Code 4 for a QCD from an inherited (death distribution) IRA, or
Code K for a QCD reporting distributions of traditional IRA assets not having a readily available FMV that are either from non-inherited or inherited IRAs.

PhoebeRoberts

Answer

Intuit Community Champion

Lacerte doesn't have any of the new law stuff programmed in yet.

IRS instructions (https://www.irs.gov/instructions/i1099r#en_US_2025_publink1000147723) say:

To report a QCD use code Y with:

Code 7 for a QCD from a non-inherited (normal distribution) IRA,
Code 4 for a QCD from an inherited (death distribution) IRA, or
Code K for a QCD reporting distributions of traditional IRA assets not having a readily available FMV that are either from non-inherited or inherited IRAs.

C

Caroleamst

Level 2

I just noticed that the question about code Y for QCD was asked in December. It's February and Lacerte still hasn't added that designation to the program. I have a specific 1099 with Y on it. When I do get it in--I get a critical diagnostic which says the return can't be efiled.

I wouldn't think that this would be hard to add to the program!!