IRS Form 1099-R: Distributions From Retirement Plans
Form 1099-R reports distributions from retirement accounts including pensions, IRAs, and annuities.
What Is Form 1099-R?
Documents retirement plan distributions with key tax information.
Key Details Reported:
- Gross distribution amount (Box 1)
- Taxable amount (Box 2a)
- Federal income tax withheld (Box 4)
- Distribution codes indicating type (Box 7)
- Capital gains for certain annuities (Box 3)
Who Receives Form 1099-R?
- Individuals taking IRA or 401(k) distributions (including RMDs)
- Recipients of pension or annuity payments
- Those completing rollovers between retirement accounts
- Beneficiaries inheriting retirement accounts
- Participants taking hardship withdrawals or plan loans
Why Is It Important?
- Distributions may be fully or partially taxable
- Early withdrawals (before age 59½) may incur 10% penalty
- Required Minimum Distributions (RMDs) have strict rules
- Incorrect reporting can trigger IRS notices
- Special rules apply to inherited retirement accounts
How to Report Form 1099-R
Filing requirements:
- Enter taxable amount on Form 1040 (Line 5b for IRAs)
- Report any withholding as tax payments
- File Form 5329 for early withdrawal penalties if applicable
- Include Form 8606 for nondeductible IRA contributions
- Special reporting for rollovers (Code G in Box 7)
Key Tips
- Track basis in nondeductible IRA contributions (Form 8606)
- Understand exceptions to early withdrawal penalties
- Know RMD deadlines (April 1 after turning 73 for most retirees)
- Verify direct rollovers were processed correctly
- Keep all 1099-R forms for tax records
Related Forms
- Form 8606 (Nondeductible IRAs)
- Form 5329 (Additional IRA Taxes)
- Form 1040 (Individual Tax Return)
- Form 4972 (Tax on Lump-Sum Distributions)
Need Help With Retirement Distributions?
KARME Tax Services specializes in retirement account taxation.
Call 972-519-0041 for expert guidance on your 1099-R.