The Form 1099-R is used to report distributions from retirement plans, pensions, annuities, and other similar types of accounts. It is issued by financial institutions or retirement plan administrators to individuals who have received a distribution from these accounts.
File Form 1099-R for each individual whom you have made a designated distribution or are considered to have made a distribution of $10 or more from the following sources:
- Profit-sharing or retirement plans.
- Any individual retirement arrangements (IRAs).
- Annuities, pensions, insurance contracts, survivor income benefit plans.
- Permanent and total disability payments under life insurance contracts.
- Charitable gift annuities, etc.
Here’s a quick overview of the key information reported on Form 1099-R:
- Gross Distribution: The total amount distributed from the retirement account.
- Taxable Amount: The portion of the distribution that is subject to income tax.
- Federal Income Tax Withheld: Any amount of federal income tax that was withheld from the distribution.
- Distribution Code: A code that indicates the type of distribution, such as an early withdrawal or a normal retirement distribution.
- Payer Information: Details about the institution that made the distribution.
- Recipient Information: Details about the individual receiving the distribution.
To learn more about the 1099-R, please refer to the IRS About 1099-R page.
Boxes in 1099-R
Here is some notable information in boxes 1,2,4, & 7 of the 1099-R.
- Box 1 reports the total amount of distribution for a retirement plan or annuity. This is the gross amount you have received from the plan. It may be taxable or not depending on various factors.
- Box 2 reports the taxable amount of the distribution as reported by the payer.
- Box 4 reports the amount the payer withheld from a distribution.
- Box 7 is the distribution code. This identifies the type of distribution the taxpayer took. The code will help determine the liability of taxation on the distribution. The codes are described on the back of the 1099-R form.
To view the 2024 1099-R see the IRS form linked here:
Why am I getting an error when I save my 1099-R inputs?
If an error message occurs when clicking Save & Continue, make sure to check box 7 to make an IRA selection in the drop-down.