1099-R Code Y

[jerry]

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)?

[PhoebeRoberts · Accepted solution]

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.

[Caroleamst]

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!!

[IntuitKatie]

@Caroleamst Thank you bringing this to our attention! I have passed this along and development is taking a look. Thanks!

[jfindley]

Thank you, I have the same issue, cannot add code Y for charitable contribution from an IRA

[Caroleamst]

Can't efile with a code Y.

[IRonMaN]

I am just thinking out loud here, but I wonder if Phoebe's suggestion might actually help with the issue.  🤔