1099-R Code G: Direct Rollover

Your money moved trustee-to-trustee into another retirement account without touching your hands. Normally nothing is taxable.

What the IRS instructions say

Official meaning, from the Instructions for Forms 1099-R and 5498 Used for a direct rollover from a qualified plan, 403(b), or governmental 457(b) to another eligible plan or IRA, for direct payments from an IRA into an employer plan, and for in-plan Roth rollovers that are direct. The instructions specifically say NOT to use G for a direct rollover from a designated Roth account to a Roth IRA (that is code H).

Is it taxable, and does the 10 percent penalty apply?

Usually box 2a shows zero and nothing is taxed, though the rollover still gets reported on your return. THE EXCEPTION: a direct rollover from pre-tax money into a Roth destination (in-plan Roth rollover or conversion to a Roth IRA) also uses code G but with a taxable amount in box 2a. Code G does not automatically mean tax-free; box 2a decides.

Worth knowing: Did a direct rollover but got code 1 or 7? The form is wrong; request a corrected 1099-R from the payer. Did an INDIRECT (60-day) rollover? Then 1 or 7 is correct and you reconcile on your return.

Combinations you might see

Box 7 can carry two codes. With code G, the pairings mean:

4G: inherited plan money directly rolled for a beneficiary
GK: direct rollover of hard-to-value assets
BG: one designated Roth account directly rolled to another designated Roth account

If this code looks wrong

The IRS matches Box 7 against your return, so start with the payer: request a corrected 1099-R, which is the IRS's standing instruction for incorrect forms. No corrected copy by the end of February? The IRS can contact the payer for you, and Form 4852 substitutes as a last resort. Remember that an indirect 60-day rollover is correctly coded 1 or 7, because the payer cannot see the redeposit; direct rollovers should show G or H, as our rollover guide explains before the paperwork ever gets cut.

← All 1099-R Box 7 codes

Sources: IRS Instructions for Forms 1099-R and 5498; IRS Tax Topics 558 (early distributions), 413 (rollovers), and 154 (incorrect forms). Verified July 2026.

General educational information, not tax advice. Your distribution's taxation depends on your facts; consult a qualified tax professional. ClearChoiceRadar is not affiliated with the IRS or any government agency.