What Is Form 1099-R?

The IRS has made it mandatory to report different types of retirement-related payments to be reported on Form 1099-R.

This blog will help you learn how to file 1099-R on time and as accurately as possible.

What is Form 1099-R?

Form 1099-R in simple terms is an informational return that tracks withdrawals or payments of $10 or more in a year from various retirement and benefit accounts such as:

• Traditional retirement accounts like 401(k)s or pensions plans
• IRAs (individual retirement accounts)
• Annuities or insurance contracts
• Disability payments from a life insurance
• Death benefits
• Survivor income benefits
• Profit sharing plans

Filing 1099-R for payers on time and accurately ensures that both the IRS and recipients receive accurate records of retirement distributions and reduces follow-up calls from recipients.

Who File Form 1099-R And Sends It To The Recipients?

So, now that you know what is form 1099-R and what it reports, let’s find out if your business is eligible to file the form.

Any business or organization that distributes retirement money will have to file 1099-R to report the distribution including:

• Banks and Credit Unions: Handling custodial IRAs, CD rollovers to IRAs
• Brokerage & Mutual-Fund Firms: Managing 401(k), 403(b), SEP, SIMPLE, Roth IRA accounts
• Insurance Companies: Issuing annuity payouts, pension contracts, life-insurance settlements
• Employers & Payroll Teams: Managing defined-benefit pensions and executive benefit plans
• Government Agencies: Managing Federal Thrift Savings Plan, state teacher retirement systems, local public-safety pensions
• Third-Party Administrators (TPAs): Such as outsourced 401(k) record-keepers and trust companies
• Special cases: Churches with 403(b) plans, tribal governments, nonprofit hospitals

Payments That Belong To Form 1099-R

Form 1099-R reports different retirement payments including:

• Normal distributions after retirement age, including RMDs and regular payouts from pensions, annuities, or profit-sharing plans
• Survivor income benefits paid to beneficiaries
• Early distributions taken before retirement age
• Plan loan offsets when retirement loans go unpaid
• Refunds or corrective distributions for excess contributions or failed 401(k) testing
• Payments to state unclaimed property funds (abandoned retirement accounts)
• Rollovers and conversions (direct/indirect rollovers, Roth conversions, & automatic rollovers
• Disability payments from retirement plans or insurance contracts
• Qualified Charitable Distributions (QCDs) and charitable gift annuities
• Employer death benefits paid outside of retirement plans

Deadline for Filing and Distributing Form 1099-R

Here are the 1099-R filing dates you need to keep in mind when filing.

Form 1099-R Box Guide: What needs to be reported?

Our 1099-R box guide is here to help you figure out what needs to be reported on each box on the form.

Box 1: Gross distribution

Report the total amount of money distributed from direct rollovers, IRA payments, Roth IRA conversions, insurance premiums, and government 457(b) plans.

Box 2a: Taxable amount

The taxable portion of the gross distribution reported in Box 1.

Box 2b: Taxable amount not determined and Total distribution checkbox

Check this box only if you can’t determine the taxable amount or if the person received their entire account balance in a year.

Box 3: Capital Gain (Included in Box 2a)

Report the payment amount if part of the distribution is taxed as a capital gain.

Box 4: Federal Tax Withheld

Report federal income tax withheld from the distribution (20% for rollover-eligible distribution and 10% for non-rollover).

Box 5: Employee contributions/ Designated Roth contributions or insurance premiums

Report after-tax contributions or insurance premiums the employee can withdraw tax-free.

Box 6: Net unrealized appreciation in employer’s securities

Report the increase in value, if it is an employer stock.

Box 7: Distribution code(s)

Report the type of distribution by referring to the 1099-R codes explained including 1 (early withdrawal), 2 (exception), 3 (disability), 4 (death), 7 (normal), G (direct rollover), H (designated Roth direct rollover), 8 (excess deferral refund), M (qualified plan loan offset), Y (QCD), etc.

Note: The IRS code for QCDs has been updated to Code “Y” for 2025 filing season.

Box 8. Other

Report annuity contract or long-term care charges taken from an annuity or life insurance policy.

Box 9a: Your percentage of total distribution

Enter the recipient’s share if the account was split between multiple people.

Box 9b: Total employee contributions (Optional)

Report the total employee contributions.

Box 10: Amount Allocable to IRR Within 5 Years

Report distributions related to an IRR made in the last 5 years.

Box 11: First Year of Desig. Roth Contrib.

Enter the first year the recipient contributed to their Roth account.

Box 12: FATCA Filing Requirement Checkbox

Check this box if you are filing under FACTA rules

Box 13: Date of Payment

Required only for reportable death benefits.

Box 14, 15, & 16: State tax withheld

Required only if state tax was withheld.

Box 17, 18, 19: Local tax

Required for local tax reporting.

Get 1099-R codes and boxes right the first time when you e-file with Tax1099

Get Started

How to File Form 1099-R – Key Checklist

1. Always collect and verify EIN/SSN, address, and details using Form W-9.
2. Add up all the distributions made in a year including cash, stock, and any automated rollovers.
3. Reconcile tax deposits to make sure it matches the amount of federal income tax withheld (Box 4) with Form 945 deposits.
4. Run a Tax1099 1099-R TIN Match to verify if the TIN and name match IRS records.
5. Use the correct Box 7 IRS code to report the type of distribution.
6. Get approval, print, and mail recipient copies of 1099-R via Tax1099’s secure delivery portal before Jan 31.

How To Correct Common 1099-R Mistakes

Mistake 1: Reporting the wrong dollars or code

File a “CORRECTED” 1099-R form and re-enter all boxes exactly as they should have appeared.

Mistake 2: Using the wrong recipient TIN or name

File a voided copy of the incorrect form where you leave the boxes blank except for the payer and recipient name and mark the “CORRECTED” checkbox. Prepare a new 1099-R form with the correct TIN/name.

Mistake 3: Federal tax withheld was not reported

File a CORRECTED 1099-R and report the federal tax withheld on Box 4.

Mistake 4: Not filing a state copy of 1099-R

There are a couple of states that require their own 1099-R filing including Arizona, Illinois, New Jersey, California, District of Columbia, etc. Most states accept IRS-forwarded filings, but a few want a direct state re-file. Check your state’s DOR site or reach out to Tax1099 for state-filing support.

Form 1099-R Penalties

Note: You can avoid paying penalties by getting a waiver from the IRS using a reasonable-cause letter (only works for natural disaster, system outage).

When to Use Form 1099-R Codes Explained

1.A 65 year old retiree was paid $18,000 in pension

File 1099-R and report the $18,00 in Box 1 and use Code 7 in Box 7 to indicate that it is a normal distribution.

2.An early $6,500 IRA withdrawal to a 42 year old worker

File 1099-R and report the $6,500 withdrawal amount in Box 1. Use Code 1 in Box 7 to show that it was an early distribution.

3.$20,000 direct rollover from a 401(k) to an IRA

File 1099-R and report the $20,00 rollover amount in Box 1and use Code G in Box 7 to show it was a direct rollover.

4.There was a $750 plan-loan offset with 22% tax withheld

File 1099-R and report the $165 (22% withheld) in Box 4. Use Code 1 in Box 7 to show that it was an early distribution with no exception.

5.An individual received $9,000 disability payout from pension

File 1099-R and report the $9000 in Box 1 and use Code 3 in Box 7 to indicate that it was a disability distribution.

FAQs

Do rollovers still need a 1099-R form when no tax is due?

Yes, rollovers have to be reported on 1099-R even if no tax is due. When filing, use Code G in Box 7 to indicate that the amount was rolled over and stayed tax-deferred.

Can several plans for one person be on one 1099-R form?

Yes, if an individual has several retirement plan distributions, the amounts can be aggregated in a single form if the distribution codes are similar. You’ll need separate 1099-R forms if the distribution codes are different.

Does a corporation that got a payout still get 1099-R form?

Yes, recipients for 1099-R form can be corporations. The entity type doesn’t change the reporting requirements for 1099-R as long as the distribution amount is above the minimum amount of $10.

What if the person won’t share a TIN?

If a person doesn’t share their TIN, you can start the 24% backup withholding and file 1099-R with the available information.

How long must tax records be saved?

The IRS recommends saving tax records for a minimum of 3 years. At Tax1099, you can securely store your 1099-R tax form filing records and proof of delivery for at least four years.

Is a state copy for 1099-R always needed?

A state copy of Form 1099-R is required depending on which state you are filing from. States like New Jersy, Ohio, California, etc. participate in the IRS Combined Federal/State Filing Program and receive the filing directly from the IRS. There are a few states that require separate direct filing on their own state portals like Iowa, Washington D.C., etc.

Filing retirement distributions doesn’t have to be complex.

E-file 1099-R with Tax1099

Get Started