How to Fill Out IRS Form 1099-R

IRS Form 1099-R, titled "Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.," is sent to those taxpayers who received disbursements from a retirement plan. This is written from the point of view of the entity filling out the 1099-R, not the person receiving it.

Difficulty: Moderate

Instructions

Complete Introductory Information and Boxes 1-6

1. Call (800) tax-form or visit the IRS online form ordering website (see our Resources below) to obtain acceptable copies of Form 1099-R to send to recipients. Although Form 1099-R is available for viewing online, the e-version of the form is unacceptable to send to taxpayers or the Internal Revenue Service.

2. Check the "Void" or "Corrected" box at the top of the 1099 form, if applicable. Enter the Payer's name, street address, city, state and zip code in the first box. The Payer is the organization or entity that distributed the retirement money.

3. Enter the Payer's Federal identification number and the Recipient's identification number (usually a Social Security number) in the two boxes beneath the first box. Below this, list the Recipient's name, street address (including apartment number), city, state and zip code. Indicate the first year Roth IRA contributions began, if applicable. Enter the account number that is associated with the retirement plan.

4. Show the total disbursement amount to the Recipient this year in Box 1. Indicate the taxable amount of Box 1 in Box 2a. Check the first check box in Box 2b if an accurate taxable amount cannot be determined. Check the second check box in Box 2b if the distribution was a total amount that closed out the Recipient's account. Indicate the amount from Box 1 that is considered as a capital gain in Box 3.

5. Indicate the amount of Federal income tax withheld from the distribution in Box 4. In Box 5, show the Recipient's after-tax investment in a retirement plan that was recovered tax-free this year. List the Recipient's net unrealized appreciation in employer stock (an increase in value of securities not yet sold) in Box 6.

Complete Boxes 7-15

6. Input the appropriate code in Box 7 to indicate the type of disbursement: 1—Early distribution, no known exception; 2—Early distribution, exception applies; 3—Disability; 4—Death; 5—Prohibited transaction; 6—Section 1035 exchange; 7—Normal distribution; 8—Excess contributions plus earnings/excess deferrals taxable in the current year; 9—Cost of current life insurance protection; A—May be eligible for 10-year tax option; B—Designated Roth account distribution; D—Excess contributions plus earnings/excess deferrals taxable in the prior tax year; E—Excess annual additions under section 415 and certain excess amounts under section 403(b) plans; F—Charitable gift annuity; G—Direct rollover to a qualified plan, a 403(b) plan, a governmental 457(b) plan or an IRA; J—Early distribution from a Roth IRA, no known exception; L—Loans treated as distributions; N—Recharacterized IRA contribution made for current tax year and recharacterized in current tax year; P—Excess contributions plus earnings/excess deferrals taxable in prior tax year; Q—Qualified distribution from a Roth IRA; R—Recharacterized IRA contribution made in prior tax year and recharacterized in current tax year; S—Early distribution from a simple IRA in first two years, no known exception; or T—Roth IRA distribution, exception applies.

7. Demonstrate the value of an annuity contract disbursed to the Recipient; if the distribution went to two or more people, show the percentage of the annuity contract distributed to the Recipients in Box 8. In Box 9a, if a total distribution went to two or more people, show the percentages that the Recipients' received. In Box 9b, indicate the Recipients' total contributions to a life annuity or after-tax contributions to a 403(b) plan.

8. Illustrate the amount of state tax that was withheld (if any) from the distribution in Box 10. Indicate the State/Payer's state number in Box 11. List the amount of the distribution susceptible to state withholding in Box 12. Similarly, list the amount of local tax that was withheld (if any) from the distribution in Box 13. Indicate the name of the Locality in Box 14. List the amount of the distribution susceptible to local withholding in Box 15.

9. File Form 1099-R with the IRS; also send a copy to the recipient. Check the IRS official website (see our Resources below) for specific instructions as to the filing deadline for Form 1099-R; it changes annually.

Resources

• Click here to download IRS forms.