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Level 4
February 23, 2022
Solved

How is a 1099-R Distribution Code M1 entered into the system?

  • February 23, 2022
  • 1 reply
  • 24 views
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Best answer by Frustrated-in-IL

I don't believe it is code "M1".  It is two codes, "M" and "1".  If that is the case, you can enter two codes.

1 reply

Level 8
February 23, 2022

I don't believe it is code "M1".  It is two codes, "M" and "1".  If that is the case, you can enter two codes.

Level 4
February 23, 2022

That is what I was thinking myself.  Usually the reporting is separated into separate boxes.  In this case the Payer issued the both codes inside the same box instead of utilizing the available secondary box.  Thank you.

qbteachmt
Level 15
February 23, 2022

"The code M1 indicates that your loan was paid off with an offset distribution from the retirement plan, effectively a distribution from the plan paid to you that was immediately turned around to pay off the loan."

Someone took at loan from their employer retirement plan account, and instead of paying it back, they are now charged with it as Distribution.

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