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Table of Contents

What Is Form 1099-R?

Form 1099-R reports designated distribution, or payment treated as a distribution, of $10 or more for each person you paid distributions to, such as profit-sharing or retirement plans, IRAs, annuities, pensions, insurance contracts, survivor income benefit plans, permanent and total disability payments made under life insurance contracts, charitable gift annuities, etc.

The form also reports non-taxable distributions such as tax-free rollovers or qualified Roth IRA distributions. Any hardship distributions and required minimum distributions (RMDs) must also be reported using Form 1099-R.

The IRS uses the information in this form to reduce underreporting by matching the data with the data reported on Form 1040 or 1040-SR.

Who Must File 1099-R?

Form 1099-R is filed by any person or entity that makes a distribution worth $10 or more, such as:
  • Banks and Credit Unions
  • Brokerage & Mutual-Fund Firms
  • Retirement plan administrators
  • Insurance companies
  • Government agencies
  • Third Party Administrators
  • Employers & Payroll Teams

Form 1099-R Boxes: Line-by-Line Breakdown

In order to file 1099-R acurrately, you need to have a clear idea on how to fill out 1099 R form, box-by-box.
Box What It Reports
1: Gross distribution It shows the total amount distributed during the year.
2a: Taxable amount Taxable amount of the distribution reported on Box 1.
2b: Taxable amount not determined / Total distribution
  • Check this box if the payer cannot determine the taxable amount
  • Check the second box if the distribution was a total distribution.
3: Capital gain (included in Box 2a) Lump-sum distribution from a qualified plan that is eligible for a special capital-gain election
4: Federal income tax withheld Income tax withheld from the distribution
5: Employee contributions / designated Roth contributions or insurance premiums Non-taxable part of the distribution being reported.
6: Net unrealized appreciation (NUA) of employer securities For securities distributed as part of a lump-sum (taxed when securities are sold, subject to specified conditions).
7: Distribution code Codes to identify the distribution received.
8: Other Current value of annuity contract received as part of the distribution. 
9a: Your percentage of the total distribution Recipient’s percentage if multiple recipients share one account.
9b: Total employee contributions (optional) Lifetime contribution to an account.
10: Amount allocable to IRR within 5 years Amount of the distribution subject to an in-plan Roth rollover (IRR) made within a 5-year period.
11: 1st year of designated Roth contribution The first year of the 5-tax-year period for determining if a designated Roth distribution is qualified.
12: FATCA filing requirement Filled when the payer is reporting under FATCA rules.
13: Date of payment For reportable death benefits under section 6050Y
14-19: State & Local tax withheld Mandatory if state or local tax was withheld.

Different Types of Form 1099-R Copies

Form 1099-R is issued in multiple copies, each with a specific purpose:

Copy A: This copy is filed and sent to the IRS. In case of paper filing, this copy is submitted along with Form 1096. 

Copy B: This copy is sent to the recipient, who then uses it to complete their personal tax returns.

Copy C: Taxpayers must retain this copy for at least 3 to 4 years. 

Copy 1: This copy is sent to the state/local/city tax department (if required).

Copy 2: Provided to the recipient if they need to file a city, state, or local tax return.

 

1099-R e-filing and paper filing deadline

  • Copy B to recipients - Feb 2, 2026 (Original due date (Jan 31) moved since it’s the weekend)
  • Paper file 1099-R - Mar 2, 2026 (Original due date (Feb 28) moved since it’s the weekend)
  • E-file 1099-R - March 31, 2026

Penalty For Late Filing

  • Filed within 30 days late: $60 per return
  • Filed between March 1 to August 1: $130 per return
  • Filed after August 1 or not filed at all: $340 per return
  • Intentional disregard: $6860 per return, with no maximum limit

Step-by-Step 1099-R Instructions

The step-by-step 1099-R instructions will help you file the form easily and correctly. 
  1. Collect the Form W-9 from the payee and validate the TIN mentioned in it.
  2. Fill out the name, address, and TINs of the payer and receiver.
  3. Enter the gross distribution amount in Box 1, any taxable amount in Box 2a, federal tax withheld in Box 4, and contribution amount in Box 5.
  4. Make sure that you select the correct distribution code in box 7.
  5. Fill in the rest of the boxes, including state or local level information. 
  6. Evaluate the data you reported on the form and validate the settlement agreements/plan statements.
  7. E-file with the IRS and share recipient copies on or before the deadline.

Real-Life Scenarios (Explained)

 

Withdrawal of $25,000 from a 401(k) by a retiree who is above the (age: of 59)

Early withdrawal penalties are not applicable in this case due to the age of the retiree. So, the withdrawal is counted as a normal distribution and reported on Box 1. Use Code 7 for Box 7. 

A 40-year-old withdraws $5,000 early from IRA

This early withdrawal attracts a 10% penalty, unless a special exception applies. Report the amount on Box 1 and use Code 1 in Box 7.

Disability income payout

Distribution received by a permanently disabled individual is an exception to the early withdrawal penalty and reported using Code 3 in Box 7.. 

Rollover of $15,000 to another IRA

In the case of a direct rollover of $15,000 from a 401(k) to an IRA, report it using Code G in Box 7 and $0 in Box 2.

Beneficiary inherits $20,000 after participant’s death

Early withdrawal penalty is not applicable here. The distribution code to be reported in Box 7 is Code 4.

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Frequently Asked Questions

Yes, rollovers are reported on Form 1099-R even though they are non-taxable.

If a taxable amount cannot be determined, you still need to report it by checking Box 2b and leaving Box 2a blank.

Yes, all Roth IRA distributions must be reported, regardless of whether they are tax-free or a qualified withdrawal.

Leaving Box 7 (distribution code) blank or entering the incorrect code is one of the most common Form 1099-R errors and can result in a rejection.

No, direct transfers between retirement accounts of the same type are not reported.