1099R

The Form 1099-R, also known as Distributions From Pensions, Annuities, Retirement Plans, IRAs, Insurance Contracts, etc., is an IRS tax form. It is used to report distributions made from retirement plans, annuities, pensions, IRAs, and other similar accounts. The payer of these distributions, such as a financial institution or employer, is responsible for issuing the Form 1099-R to both the recipient and the IRS.

This form details the total amount distributed, any federal or state income tax withheld, and the taxable amount of the distribution. It also includes codes that specify the reason for the distribution, such as a normal retirement, early withdrawal, disability, or rollover. Understanding these codes is crucial for accurately reporting the income on your tax return.

Recipients of a Form 1099-R must report the distribution income on their federal income tax return for the year in which the distribution was received. Depending on the type of distribution and the recipient's age, a portion or all of the distribution may be subject to income tax. Early distributions, typically those taken before age 59 ½, may also be subject to a 10% early withdrawal penalty unless an exception applies. It is important to consult with a tax professional or refer to IRS publications for specific guidance on how to report Form 1099-R distributions.