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 due dates you need to keep in mind when filing.
| Action |
Date |
| Send recipient copy (Copy B) of 1099-R to the person who was paid |
Jan 31 |
| Mail paper forms to the IRS (if you are filing less than 10 forms) |
Feb 28 |
| E-file 1099-R and send it directly to the IRS via an online platform (recommended by the IRS) |
Mar 31 |
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
How to File Form 1099-R – Key Checklist
- Always collect and verify EIN/SSN, address, and details using Form W-9.
- Add up all the distributions made in a year including cash, stock, and any automated rollovers.
- Reconcile tax deposits to make sure it matches the amount of federal income tax withheld (Box 4) with Form 945 deposits.
- Run a Tax1099 1099-R TIN Match to verify if the TIN and name match IRS records.
- Use the correct Box 7 IRS code to report the type of distribution.
- 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
| Timeline |
Penalty per form |
| Up to 30 days late |
$60 |
| 31 days to August 1 |
$120 |
| After August 1 |
$330 |
| Intentional disregard |
$660 |
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
1. 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.
2. 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 1099-R distribution codes are similar. You’ll need separate 1099-R forms if the distribution codes are different.
3. 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.
4. 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.
5. 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.
6. 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