Instructions for Recipient
Generally, distributions from retirement plans (IRAs, qualified plans,
section 403(b) plans, and governmental section 457(b) plans),
insurance contracts, etc., are reported to recipients on Form 1099-R.
Qualified plans and section 403(b) plans. If your annuity starting
date is after 1997, you must use the simplified method to figure your
taxable amount if your payer didn’t show the taxable amount in box
2a. See the instructions for your tax return.
IRAs. For distributions from a traditional individual retirement
arrangement (IRA), simplified employee pension (SEP), or savings
incentive match plan for employees (SIMPLE), generally the payer isn’t
required to compute the taxable amount. See the instructions for your
tax return to determine the taxable amount. If you’re at least age 70½
by the end of 2019 (age 72 by the end of later years), you must take
minimum distributions from your IRA (other than a Roth IRA). If you
don’t, you’re subject to a 50% excise tax on the amount that
should’ve been distributed. See Pub. 590-A and Pub. 590-B for more
information on IRAs.
Roth IRAs. For distributions from a Roth IRA, generally the payer isn’t
required to compute the taxable amount. You must compute any
taxable amount on Form 8606. An amount shown in box 2a may be
taxable earnings on an excess contribution.
Loans treated as distributions.
If you borrow money from a qualified
plan, section 403(b) plan, or governmental section 457(b) plan, you may
have to treat the loan as a distribution and include all or part of the
amount borrowed in your income. There are exceptions to this rule. If
your loan is taxable, code L will be shown in box 7. See Pub. 575.
Recipient’s taxpayer identification number (TIN). For your
protection, this form may show only the last four digits of your TIN
(SSN, ITIN, ATIN, or EIN). However, the payer has reported your
complete TIN to the IRS.
Account number. May show an account, policy, or other unique
number the payer assigned to distinguish your account.
Box 1. Shows the total amount you received this year. The amount
may have been a direct rollover, a transfer or conversion to a Roth
IRA, a recharacterized IRA contribution; or you may have received it
as periodic payments, nonperiodic payments, or a total distribution.
Report the amount on Form 1040, 1040-SR, or 1040-NR on the line
for “IRAs, pensions, and annuities” (or the line for “Taxable amount”)
and on Form 8606, as applicable. However, if this is a lump-sum
distribution, see Form 4972. If you haven’t reached minimum
retirement age, report your disability payments on the line for “Wages,
salaries, tips, etc.” on your tax return. Also report on that line
permissible withdrawals from eligible automatic contribution
arrangements and corrective distributions of excess deferrals, excess
contributions, or excess aggregate contributions except if the
distribution is of designated Roth contributions or your after-tax
contributions or if you’re self-employed.
If a life insurance, annuity, qualified long-term care, or endowment
contract was transferred tax free to another trustee or contract issuer,
an amount will be shown in this box and code 6 will be shown in box
7. If a charge or payment was made against the cash value of an
annuity contract or the cash surrender value of a life insurance
contract for the purchase of qualified long-term care insurance, an
amount will be shown in this box and code W will be shown in box 7.
You need not report these amounts on your tax return. If code C is
shown in box 7, the amount shown in box 1 is a receipt of reportable
death benefits that is taxable in part.
Box 2a. This part of the distribution is generally taxable. If there is no
entry in this box, the payer may not have all the facts needed to figure
the taxable amount. In that case, the first box in box 2b should be
checked. You may want to get one of the free publications from the IRS
to help you figure the taxable amount. See Additional information on the
back of Copy 2. For an IRA distribution, see IRAs and Roth IRAs, earlier.
For a direct rollover, other than from a qualified plan, sec. 403(b) plan,
or governmental sec. 457(b) plan to a designated Roth account in the
same plan or to a Roth IRA, zero should be shown and you must enter
zero (-0-) on the “Taxable amount” line of your tax return. If you roll over
a distribution (other than a distribution from a designated Roth account)
from a qualified plan, sec. 403(b) plan, or governmental sec. 457(b) plan
to a designated Roth account in the same plan or to a Roth IRA,
(Continued on the back of Copy C)