How is an in-kind distribution of physical gold from an IRA reported on 1099-R?

The IRS Instructions for Forms 1099-R and 5498 direct payers to include in Box 1 the fair market value of securities or other property on the date of distribution. For a traditional gold IRA, the FMV of the metal on the distribution date also appears in Box 2a as the taxable amount. Box 7 carries the applicable distribution code, typically 7 if the participant is age 59 and a half or older, or 1 or 2 if under age 59 and a half. The participant reports the FMV as ordinary income for the year and can then keep the physical metal or sell it. Consult your tax advisor for your specific situation.

IRS Form 1099-R for Gold IRA Distributions: Box 7 Codes Decoded

Q: What is a 1099-R for a gold IRA?

Form 1099-R is the IRS information return that a gold IRA custodian issues to report any distribution of $10 or more from the account during the tax year. It reports the gross distribution in Box 1, the taxable amount in Box 2a, federal income tax withheld in Box 4, and a distribution code in Box 7 that classifies the transaction (for example, normal, early with exception, direct rollover, or death). The custodian files the form with the IRS and sends the participant a copy by January 31 of the following year. Consult your tax advisor for your specific situation.

Q: Does a direct trustee-to-trustee transfer between two gold IRAs generate a 1099-R?

No. The IRS Instructions for Forms 1099-R and 5498 direct custodians not to report a trustee-to-trustee transfer from one traditional IRA to another traditional IRA that is not a SIMPLE IRA. The same rule applies to Roth-to-Roth transfers. Because the funds move directly between IRA custodians and never reach the participant, the movement is not a reportable distribution. A rollover from an employer plan such as a 401(k) into an IRA is different: it is reported on Form 1099-R with distribution code G in Box 7. Consult your tax advisor for your specific situation.

Q: What Box 7 code appears on a direct rollover from a 401(k) into a gold IRA?

The IRS Instructions for Forms 1099-R and 5498 specify code G for a direct rollover from a qualified plan, a section 403(b) plan, or a governmental section 457(b) plan to an eligible retirement plan, including an IRA. Box 1 shows the gross distribution amount and Box 2a shows zero, because a direct rollover is a tax-free movement of pre-tax funds. The receiving gold IRA custodian reports the rollover contribution on Form 5498. Consult your tax advisor for your specific situation.

Q: What is the difference between Box 7 code 1 and code 2?

Both codes report an early distribution to a participant who has not reached age 59 and a half. Code 1 means the payer does not know that an exception to the 10 percent additional tax under Internal Revenue Code Section 72(t) applies. Code 2 means the payer knows an exception applies. The IRS Instructions for Forms 1099-R and 5498 list common code 2 situations, including a Roth IRA conversion, a distribution because of an IRS levy under section 6331, and a governmental section 457(b) plan distribution that is not subject to the 10 percent tax. A code 1 payment can still qualify for a section 72(t) exception at the participant level on Form 5329, but the payer did not know it at the time of the distribution.

Q: How is a Roth conversion from a traditional gold IRA to a Roth IRA reported?

The IRS Instructions for Forms 1099-R and 5498 state that a payer must report a traditional IRA distribution known to be converted to a Roth IRA in Boxes 1 and 2a and enter code 2 or 7 in Box 7 depending on the participant's age. Code 2 is used when the participant is under age 59 and a half, because the conversion is a specifically listed section 72(t) exception. Code 7 is used when the participant is age 59 and a half or older. There is no dedicated conversion code. The receiving Roth IRA custodian reports the conversion contribution on Form 5498 in the appropriate box. Consult your tax advisor for your specific situation.

Q: What code appears on a death distribution to a gold IRA beneficiary?

Code 4 is used for a death distribution regardless of the participant's or beneficiary's age. The IRS Instructions for Forms 1099-R and 5498 direct payers to use code 4 for payments to a decedent's beneficiary, including an estate or trust, and for death benefit payments. A surviving spouse who elects to treat the inherited IRA as the spouse's own and then takes a distribution is reported under the participant's own code (typically 7 for age 59 and a half or older, or 1 or 2 if younger). A beneficiary who takes an inherited distribution before age 59 and a half is not subject to the 10 percent early distribution tax because of the death exception under Internal Revenue Code Section 72(t). Consult your tax advisor for your specific situation.

Q: What are Roth IRA codes J, Q, and T on Form 1099-R?

The IRS Instructions for Forms 1099-R and 5498 use three specific Roth IRA codes. Code Q applies when the payer knows the participant has met the five-year holding period and is at least age 59 and a half, is disabled, or has died. Code Q signals a qualified distribution, fully tax-free. Code T applies when the payer does not know whether the five-year period is met but knows the participant is at least age 59 and a half, is disabled, or has died. The participant then determines the treatment on Form 8606. Code J applies to an early distribution from a Roth IRA when neither Q nor T applies. The taxable portion, if any, is calculated by the participant. Consult your tax advisor for your specific situation.

Q: Do I need to file Form 5329 with a gold IRA 1099-R?

Form 5329, Additional Taxes on Qualified Plans, is filed by the participant when the participant owes the 10 percent additional tax on an early distribution and Box 7 shows code 1, or when the participant claims a section 72(t) exception that the custodian did not code on the 1099-R. Form 5329 is also used to report a missed required minimum distribution and to request the reduced 25 percent excise tax under SECURE Act 2.0. Consult your tax advisor for your specific situation.

By Goldiew Research & Editorial · Last reviewed: August 22, 2026 · 14 min read

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Every reportable distribution from a self-directed gold IRA generates an IRS Form 1099-R, and Box 7 (the distribution code) tells the IRS whether the payment is a normal withdrawal, an early distribution subject to the 10 percent additional tax, a tax-free direct rollover, or a death payment. This guide decodes the Box 7 codes that matter for gold IRA scenarios, with a worked example for each and citations to the current IRS instructions. The receiving side is covered in the Form 5498 guide.

Advisor disclaimer. This guide describes federal tax reporting rules as published by the IRS in the Instructions for Forms 1099-R and 5498. It is not tax advice, investment advice, or legal advice. Consult your tax advisor for your specific situation. IRS codes and instructions are updated annually; verify the current year instructions with your custodian and your tax advisor before relying on any Box 7 classification. Nothing here guarantees a specific tax outcome.

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Quick Answer

Box 7 tells the IRS how to tax the distribution, and the wrong code costs real money

A gold IRA distribution of $10 or more is reported on Form 1099-R. Box 1 is the gross amount (fair market value for in-kind metal), Box 2a the taxable amount, Box 4 federal withholding, Box 7 the distribution code. Common gold IRA codes: 1 (early, no exception), 2 (early, exception applies, including Roth conversions), 4 (death), 7 (normal, 59½ or older), G (direct rollover from an employer plan), and J, Q, or T for Roth IRAs. A trustee-to-trustee transfer between two same-type IRAs is not reported at all.

What Form 1099-R reports for a gold IRA

The IRS requires the form for each person receiving a designated distribution of $10 or more from retirement plans, annuities, and IRAs (IRS Instructions for Forms 1099-R and 5498). The self-directed IRA custodian is the payer; the participant is the recipient. The custodian issues the form by January 31 and files it with the IRS.

Form 1099-R feeds directly into the participant’s Form 1040 (taxable IRA distribution line) and, when relevant, Form 5329 (10 percent additional tax) or Form 8606 (Roth IRAs and after-tax basis). Because the custodian relies on the distribution request to code the payment, review the 1099-R before filing: if a code is wrong, request a corrected 1099-R.

The boxes that matter: 1, 2a, 2b, 4, and 7

For a gold IRA, five 1099-R boxes carry most of the tax weight.

Box	What it reports
Box 1: Gross distribution	The total distribution before withholding. For an in-kind metal distribution, the IRS instructs the payer to include the fair market value of the metal on the date of distribution.
Box 2a: Taxable amount	The portion of Box 1 subject to federal income tax. For a traditional gold IRA with no after-tax basis, this equals Box 1. For a direct rollover reported with code G, this is generally zero.
Box 2b: Taxable amount not determined / Total distribution	Checkboxes. Custodians frequently check “Taxable amount not determined” for IRA distributions and Roth conversions and let the participant determine the taxable portion on Form 8606.
Box 4: Federal income tax withheld	Any federal tax withheld from a cash distribution. IRA distributions have a default 10 percent withholding unless the participant elects otherwise. A direct rollover has no mandatory withholding.
Box 7: Distribution code(s)	One or two codes from the IRS Guide to Distribution Codes that classify the payment.

The IRS Instructions for Forms 1099-R and 5498 include Table 1, Guide to Distribution Codes, which lists every valid code and the allowed combination codes for each. The next sections cover the codes most likely to appear on a gold IRA 1099-R and provide a worked scenario for each.

Code 1: Early distribution, no known exception

1 Early distribution, no known exception

The IRS instructions direct payers to use code 1 “only if the participant has not reached age 59½, and you do not know if any of the exceptions under code 2, 3, or 4 apply” (IRS Instructions for Forms 1099-R and 5498). Specific section 72(t)(2) exceptions (first-time home purchase, qualified reservist, birth or adoption) are still typically coded 1 because the custodian does not verify them; the participant claims the exception on Form 5329.

Worked scenario. A 52-year-old participant requests a $12,000 cash distribution. The custodian sells the metal, wires the cash, and issues a 1099-R with $12,000 in Box 1, $12,000 in Box 2a, code 1 in Box 7, and default 10 percent federal withholding in Box 4. The participant owes ordinary income tax plus the 10 percent additional tax under section 72(t) unless a listed exception is claimed on Form 5329.

Code 2: Early distribution, exception applies

2 Early distribution, exception applies

Code 2 applies when the participant is under age 59 and a half and the custodian knows an exception applies. The IRS instructions list, among others, a Roth IRA conversion, a distribution because of an IRS levy under section 6331, and a substantially equal periodic payment series under section 72(q), (t), (u), or (v).

Worked scenario. A 55-year-old converts $40,000 of a traditional gold IRA to a Roth IRA. The custodian issues a 1099-R showing $40,000 in Box 1 and Box 2a, code 2 in Box 7. The receiving Roth IRA custodian reports the conversion on Form 5498. The participant pays ordinary income tax on the $40,000 but avoids the 10 percent additional tax because the conversion is a listed section 72(t) exception.

Code 3: Disability

3 Disability

Code 3 is used for a disability distribution as defined in section 72(m)(7): the participant must be unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment expected to be of long-continued and indefinite duration.

Worked scenario. A 48-year-old certified as disabled requests a $30,000 in-kind distribution of gold bars. The custodian reports $30,000 in Box 1 and Box 2a (fair market value on the distribution date) with code 3 in Box 7. Ordinary income tax applies but no 10 percent additional tax because of the disability exception under section 72(t)(2)(A)(iii).

Code 4: Death

4 Death

Code 4 indicates payment to a decedent’s beneficiary (including an estate or trust), regardless of age.

Worked scenario. A 62-year-old gold IRA holder dies; the named beneficiary is a 40-year-old adult child. The custodian retitles the account as an inherited IRA and later distributes $18,000 in cash. The 1099-R shows $18,000 in Box 1 and Box 2a, code 4 in Box 7. Ordinary income tax applies; the 10 percent additional tax does not, because of the section 72(t)(2)(A)(ii) death exception. The SECURE Act 10-year rule for most non-spouse beneficiaries controls the timing of full distribution, independently of the Box 7 code.

Code 7: Normal distribution

7 Normal distribution

Code 7 is used for a normal distribution from a plan, including a traditional IRA, when the participant is at least age 59 and a half, and for a Roth IRA conversion at that age. The IRS instructs payers to “use code 7 if no other code applies” and not to use code 7 for a Roth IRA distribution (Roth IRA distributions use J, Q, or T).

Worked scenario. A 68-year-old takes a $25,000 cash distribution and a $15,000 in-kind distribution of American Gold Eagle coins in the same year. The custodian issues a 1099-R with $40,000 in Box 1 and Box 2a, code 7 in Box 7. The participant reports $40,000 as ordinary income and owes no early distribution additional tax.

Code 8: Excess contributions plus earnings taxable in current year

8 Excess contributions plus earnings taxable in current year

Code 8 reports a corrective IRA distribution under section 408(d)(4) taxable in the current year (unless code P applies). The corrective distribution returns an excess contribution plus allocable earnings before the return due date, avoiding the 6 percent excise tax.

Worked scenario. A participant contributes $8,500 to a gold IRA in 2026, exceeding the annual limit. Before the filing deadline the custodian returns the excess plus $120 of earnings and issues a 1099-R with $620 in Box 1 and code 8 in Box 7. The earnings portion is taxable in the year of the excess contribution and, if the participant is under 59 and a half, subject to the 10 percent additional tax unless an exception applies. See the excess contribution correction guide.

Code G: Direct rollover

G Direct rollover of a distribution to a qualified plan or an IRA

Code G is used for a direct rollover from a qualified plan, a section 403(b) plan, or a governmental section 457(b) plan to an eligible retirement plan (including an IRA). The IRS instructs payers to “report a direct rollover in box 1” and “a 0 (zero) in box 2a.” No mandatory federal withholding applies.

Worked scenario. A 60-year-old retires and directs a $200,000 direct rollover from an employer 401(k) into a self-directed traditional IRA holding IRS-approved metals. The plan administrator issues a 1099-R with $200,000 in Box 1, $0 in Box 2a, code G in Box 7, no withholding. The gold IRA custodian reports the receipt on Form 5498. See the Form 5498 guide.

Code H: Direct rollover of a designated Roth account to a Roth IRA

H Direct rollover of a designated Roth account distribution to a Roth IRA

Code H applies to a direct rollover from a designated Roth account inside an employer plan (such as a Roth 401(k)) to a Roth IRA. The IRS instructs payers not to use code G for this scenario.

Worked scenario. A 63-year-old rolls $75,000 from a Roth 401(k) into a self-directed Roth IRA holding physical metals. The plan administrator issues a 1099-R with $75,000 in Box 1, $0 in Box 2a, code H in Box 7. No withholding, no federal tax on the rollover.

Roth IRA distribution codes J, Q, and T

J Early distribution from a Roth IRA, no known exception

Used for a Roth IRA distribution when code Q or T does not apply. IRS also directs code 2 for an IRS levy and code 5 for a prohibited transaction. Code J typically applies to a Roth participant under 59 and a half who is neither disabled nor deceased.

Q Qualified distribution from a Roth IRA

Used when the payer knows the five-year holding period has been met and the participant has reached 59 and a half, is disabled, or has died. A code Q distribution is fully tax-free at the federal level.

Worked scenario. A 66-year-old opened a Roth IRA in 2010, later moved it to a self-directed Roth IRA holding physical gold, and takes an in-kind distribution of coins with $30,000 FMV in 2026. The 1099-R shows $30,000 in Box 1, $0 in Box 2a, code Q in Box 7. Fully tax-free.

T Roth IRA distribution, exception applies

Used when the payer does not know whether the five-year period is met but knows the participant is 59 and a half or older, disabled, or deceased. The participant determines the taxable portion on Form 8606. Common when a Roth IRA moves between custodians and the receiving custodian has no history for the five-year clock.

Other codes gold IRA participants may see

Code N reports a recharacterization made and recharacterized in the same year. Code R reports a recharacterization of a prior-year contribution completed in the current year. Code P reports an excess contribution plus earnings taxable in the prior year. Code K applies to IRA assets without a readily available FMV; physical bullion generally does not qualify because spot price establishes FMV. Code 5 signals a prohibited transaction, which the IRS states “means the account is no longer an IRA,” a catastrophic tax outcome.

Code combinations. Table 1 in the IRS instructions includes a “Used with code” column. Some codes appear in combination (for example, code 8 can appear with 1, 2, 4, B, J, or K). If Box 7 shows two codes, look up the combination in the current-year instructions before assuming an error.

In-kind metal distributions and fair market value

An in-kind distribution moves physical metal out of the IRA into the participant’s personal possession. The IRS instructs the payer to “include in box 1 the FMV of the securities or other property on the date of distribution.” For a traditional gold IRA with no after-tax basis, the same FMV appears in Box 2a. Box 7 carries the applicable code: 7 at 59 and a half or older, 4 for a death distribution, 3 for disability, or 1 or 2 for an early distribution.

Custodians typically document FMV using the spot price on the distribution date, adjusted for coin or bar premium where applicable. The participant carries the reported FMV as tax basis for any subsequent personal sale, subject to the collectibles rules covered in our collectibles tax comparison.

Trustee-to-trustee transfer versus rollover reporting

Not every movement is reportable. The IRS instructs custodians generally not to report “a trustee-to-trustee transfer from one IRA to another IRA.” A same-type IRA transfer (traditional-to-traditional or Roth-to-Roth) is neither a distribution nor a rollover for federal information reporting, and no 1099-R is issued.

Rollovers are reportable. A direct rollover from an employer plan into an IRA gets code G. A 60-day indirect rollover shows an ordinary code (1, 2, or 7 by age) and the participant marks the amount as rolled over on Form 1040. See the IRS overview at Rollovers of Retirement Plan and IRA Distributions.

One option for a coordinated gold IRA rollover: Augusta Precious Metals

Augusta Precious Metals is one option a participant might evaluate when planning a rollover from an employer plan or existing IRA into a self-directed gold IRA. Augusta holds a BBB A+ rating (BBB: Augusta Precious Metals) and has been named Money Magazine’s Best Overall Gold IRA Company for 2022 through 2026 and Investopedia’s Most Transparent Gold IRA Company over the same period. Clients work with a salaried, non-commissioned educator.

The practical benefit of coordinating with a full-service provider is that the receiving custodian, the metals purchase, and the paperwork sequence are handled together. The 1099-R and Form 5498 still come from the plan administrator or IRA custodian, not the metals dealer, so retain both forms with the annual tax file. Augusta’s industry-reported minimum investment is around $50,000; current terms are reviewed during the free consultation. Past performance is not a guarantee of future results.

Frequently asked questions

What is a 1099-R for a gold IRA?

The information return a gold IRA custodian issues to report any distribution of $10 or more during the tax year. Box 1 is the gross amount, Box 2a the taxable amount, Box 4 federal withholding, Box 7 the distribution code.

Does a trustee-to-trustee transfer between two gold IRAs generate a 1099-R?

No. The IRS instructs custodians not to report a trustee-to-trustee transfer between same-type IRAs. A rollover from an employer plan into an IRA is different and is reported with code G.

What Box 7 code appears on a direct rollover from a 401(k) into a gold IRA?

Code G. Box 1 shows the gross distribution and Box 2a shows zero. The receiving gold IRA custodian reports the rollover contribution on Form 5498.

How is an in-kind distribution of physical gold reported on 1099-R?

Box 1 shows the fair market value of the metal on the date of distribution; Box 2a shows the same FMV for a traditional IRA with no basis. Box 7 carries the age-appropriate code (7 at 59 and a half or older, 1 or 2 if younger).

What is the difference between Box 7 code 1 and code 2?

Both report an early distribution under age 59 and a half. Code 1 means the payer does not know an exception applies; code 2 means the payer does. A code 1 recipient can still claim an exception on Form 5329.

How is a Roth conversion from a traditional gold IRA to a Roth IRA reported?

In Boxes 1 and 2a with code 2 or 7 in Box 7 (code 2 under 59 and a half, code 7 at 59 and a half or older). There is no dedicated conversion code. The receiving Roth IRA reports the conversion on Form 5498.

What code appears on a death distribution to a gold IRA beneficiary?

Code 4, regardless of age. A beneficiary who takes an inherited distribution before age 59 and a half is not subject to the 10 percent additional tax because of the section 72(t) death exception.

What are Roth IRA codes J, Q, and T on Form 1099-R?

Code Q is a qualified Roth distribution (five-year period met, 59 and a half or older, disabled, or deceased). Code T applies when the payer does not know the five-year period is met but knows one of those conditions. Code J is an early Roth distribution when neither Q nor T applies.

Do I need to file Form 5329 with a gold IRA 1099-R?

Only when the participant owes the 10 percent additional tax on an early distribution shown as code 1, or when the participant claims a section 72(t) exception the custodian did not code. Also used for missed RMDs and the reduced 25 percent excise tax under SECURE Act 2.0.

Sources

IRS. “Instructions for Forms 1099-R and 5498 (2026).” https://www.irs.gov/instructions/i1099r. Accessed July 2026.
IRS. “About Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.” https://www.irs.gov/forms-pubs/about-form-1099-r. Accessed July 2026.
IRS. “Rollovers of Retirement Plan and IRA Distributions.” https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions. Accessed July 2026.
IRS. Publication 590-B: Distributions from Individual Retirement Arrangements. https://www.irs.gov/publications/p590b. Accessed July 2026.
IRS. “Retirement Topics: Tax on Early Distributions.” https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions. Accessed July 2026.
IRS. “About Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.” https://www.irs.gov/forms-pubs/about-form-5329. Accessed July 2026.
IRS. “About Form 8606, Nondeductible IRAs.” https://www.irs.gov/forms-pubs/about-form-8606. Accessed July 2026.
Cornell Law School Legal Information Institute. 26 U.S. Code Section 72: Annuities; certain proceeds of endowment and life insurance contracts. https://www.law.cornell.edu/uscode/text/26/72. Accessed July 2026.
Cornell Law School Legal Information Institute. 26 U.S. Code Section 408: Individual Retirement Accounts. https://www.law.cornell.edu/uscode/text/26/408. Accessed July 2026.
BBB. Augusta Precious Metals business profile. https://www.bbb.org/us/ca/beverly-hills/profile/gold-silver-coins-and-bullion/augusta-precious-metals-1216-482414. Accessed July 2026.
FINRA. “Precious Metals.” Investor Insights. https://www.finra.org/investors/insights/precious-metals. Accessed July 2026.

This guide is reviewed and updated quarterly to reflect changes in IRS rules, partner offers, and company policies. For questions, corrections, or to report inaccuracies, contact our editorial team via the contact page.

Last reviewed: August 22, 2026

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