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About Form 1099-R

IRS Tax Form 1099-R is filed for distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans and IRAs in the amount of $10 or more. Death benefit payments from employers not part of a pension or profit-sharing plan must also be reported, as do disability payments made from a retirement plan. Wage payments subject to withholding are not reported on the 1099-R. Military Retirement annuities, income tax withholding, distributions of section 404 (k) dividends from an employee stock ownership plan (ESOP), Life Insurance, annuity and endowment contracts, and charitable gift annuities are all examples of transactions to be filed on Form 1099-R. Copies of Form 1099-R must be provided to the income recipients per the general requirements for information returns.

Individual Retirement Arrangement distributions, including Deemed IRAs, Roth IRAs, Traditional, SEP, and Simple IRAs, are all included on Form 1099-R. IRA distributions are subject to 20% withholding and must be reported in box 4. Corrective distribution from an IRA, IRA revocations and account closures, and transfers from simple to non-simple IRAs must be entered in various sections of the form. If a traditional or Roth IRA is closed within the first seven days or revoked in connection with non-satisfaction of the Customer Identification Program requirements, distributions must be reported.

A separate 1099-R form must be filed for a designated Roth IRA. Deductible Voluntary Employee Contributions (DVECs), also require a separate 1099-R to be filed, except in the case of a direct rollover. Direct rollovers, or the direct payment of the distribution from a qualified plan to a traditional IRA, or Roth IRA, can be made for an employee, an employee’s surviving spouse, or a non-spouse designated beneficiary.

Box 1 of Form 1099-R is where the taxpayer enters Gross Distribution, or the total amount of distribution before withholding. Direct Rollovers, IRA rollovers, and premiums paid for insurance protection are all entered here, along with employer securities and other property. Box 2 is where the taxable amount of income reported on Box 1 is entered.

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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

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