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1099-R form

What is form 1099 R?

1099 R: A Distribution from Pensions, Annuities, Retirement or Profit sharing plans, IRA’s Insurance, Contracts, etc. is a document to be reported to Internal Revenue Service by any person who gets a $10 or more distribution from any profit-sharing or retirement plan scheme. It also includes distribution from insurance, contracts, annuities, survivor insurance benefit plans, individual retirement arrangements. It also contains certain death benefit payments made by an employer that is not a part of any retirement plan.

Mentioned below are the boxes you will find in a 1099 R form:

Address/Identification Boxes:

These boxes include:

Name of the Payer

Federal Identification Number o the payer

Name of the recipient

Identification number of the recipient

TYpe of benefit

Account number

Paid Benefit Information boxes

These boxes include:

1         Gross distribution

2a         Taxable AMount

2b         Taxable AMount not determined

3         The amount in box two a eligible for capital gain

4         Withheld federal income tax

5         Nontaxable contributions

6         Net unrealized appreciation in e employer’s security

7         Distribution Code

8        Your percentage of total distribution

9         Total Employee Contribution

10 and 11    Amount allocated to IDR and the first year of designated Roth contribution

12        State income tax withheld

13        State/Payer’s state number

Under Paid Benefit Information, one of the most important boxes for identification is the box number 7: Distribution code, these codes help to identify the type of distribution received. These codes are used to ascertain if the distribution is taxable or if the person will be subjected to an early withdrawal penalty.

1 Early distribution (except Roth), no known exception

2  Early distribution (except Roth), an exception applies

3  Disability

4 Death

5  Prohibited transaction

6 Section 1035 tax-free exchange

7 Normal distribution

8 Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2017

9 Cost of current life insurance

A  May be eligible for 10-year tax option

B  Designated Roth account distribution

D  Annuity payments from nonqualified annuities and distributions from life insurance contracts subject to section 1411 taxes

E  Distributions under Employee Plans Compliance Resolution System (EPCRS)

F  Charitable gift annuity

G Direct rollover and direct payment

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

J  Early distribution from a Roth IRA

K Distribution of IRA assets not having a readily available fair market value (FMV)

L Loans treated as a deemed distribution

N Recharacterized IRA contribution made for 2017

P Excess contributions plus earnings/excess deferrals taxable in 2016

Q Qualified distribution from a Roth IRA

R  Recharacterized IRA contribution made for 2016

S Early distribution from a SIMPLE IRA in the first two years, no known exception

T  Roth IRA distribution, an exception applies

U  Dividend distribution from ESOP under sec 404(k)

W  Charges/payments for purchasing qualified long-term care insurance contracts

There are a set of instructions to be followed against reporting to IRS regarding Military retirement annuities , withholding and distribution from a government section , distribution of section 404 (k) dividends from an employee stock ownership plan, charitable gift annuities, IRA owners engaged in a prohibited transaction, life insurance annuity and endorsements contracts, etc

This was just an overview of the 1099 R Form and the instructions to be followed when reporting to INternal Revenue SeRVICES. Make sure you will this out while filling your tax returns before April 2 to avoid any hefty penalty. If you need any help with understanding the details of the form or need assistance with filling up the tax form, then you can seek professional advice from a firm specializing in tax form reporting.


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