Form 1099-R is used to report to you any distributions to you from all kinds of retirement plans, including IRA's.
Form 1099-R is also used to report certain types of distributions that are not treated as retirement payments, such as disability payments made before you reach retirement age and distributions from charitable gift annuities.
We reproduce the official Form 1099-R, and carry the data from the various boxes in Form 1099-R to the relevant tax forms.
Here is a description of each of the boxes on the Form 1099-R (other than the distribution codes in Box 7). See the frequently asked questions to the right of the form for a description of the codes in Box 7.
Box 1. Box 1 shows the total amount of the distribution before income tax or other deductions were withheld. However, in the case of a distribution by a trust representing CDs redeemed early, Box 1 shows the net amount distributed.
Box 2a. Box 2a shows the taxable amount of the distribution as calculated by the payer.
For distributions from IRAs and SEPs, the payer generally isn't required to compute the taxable amount. As a result, the amounts in Boxes 1 and 2a may be the same.
Depending on the nature of the distribution, you may be able to report a taxable amount on your return lower than the amount shown in Box 2a.
Box 2b. If the "Taxable amount not determined" box is checked, the payer wasn't able to determine the taxable amount.
If the "Total distribution" box is checked, the distribution shown is one or more distributions within one tax year in which the entire balance of the account is distributed.
Box 3. If you received a lump-sum distribution from a qualified plan and you were born before 1936 (or you are the beneficiary of someone born before 1936), Box 3 shows the amount for which you may be able to elect special 20% capital gains treatment.
For a charitable gift annuity, Box 3 shows any long-term capital gain.
Box 4. Box 4 shows the amount of Federal income tax withheld.
Box 5. Box 5 generally shows the employee's investment in the contract (after-tax contributions), if any, recovered tax-free this year; the part of premiums paid on commercial annuities or insurance contracts recovered tax-free; or the non-taxable part of a charitable gift annuity.
Box 5 does not show contributions to an IRA, SEP, or SIMPLE.
Box 6. If this is a lump-sum distribution from a qualified plan that includes securities of the employer company, Box 6 shows the increase in value of such securities while in the trust -- the "net unrealized appreciation" (NUA). The NUA is taxed only when you sell the securities, unless you choose to include it in your gross income this year.
If this is a distribution other than a lump-sum distribution, Box 6 shows the NUA attributable to employee contributions, which isn't taxed until you sell the securities.
Box 8. If you received an annuity contract as part of a distribution, Box 8 shows the value of the contract. If the distribution is made to more than one person, the percentage of the annuity contract distributed to you is also shown.
Box 9a. If a total distribution is made to more than one person, Box 9a shows the percentage you received.
Box 9b. If this is the first year of a life annuity from a qualified plan or from a tax-sheltered annuity (with after-tax contributions), Box 9b shows the employee's total investment in the contract.
Box 10. Box 10 shows state tax withheld on the distribution.
We'll automatically carry this amount to Schedule A - Itemized Deductions and treat it as an itemized deduction when it comes time to figure out whether you'll be better off itemizing your deductions or taking the standard deduction.
Box 12. Box 12 may show the part of the distribution subject to applicable state tax.
Box 13. Box 13 shows local tax withheld on the distribution.
We'll automatically carry this amount to Schedule A - Itemized Deductions and treat it as an itemized deduction when it comes time to figure out whether you'll be better off itemizing your deductions or taking the standard deduction.
Box 15. Box 15 may show the part of the distribution subject to applicable local tax.
How we handle various transactions reported on the Form 1099-R will depend, among other things, on the code(s) entered in Box 7 of the form, whether or not the distribution is from an IRA (including a SEP), and your answers to the various special case questions following the official form.
If your distribution doesn't involve any of the special cases covered in the questions below the official form, then we carry the gross amount of the distribution from Box 1 of the Form 1099-R to line 16a of Form 1040 (line 12a of Form 1040A) if the distribution isn't an IRA, and to line 15a of Form 1040 (line 11a of Form 1040A) if the distribution is an IRA. We carry the taxable amount from Box 2a of the Form 1099-R to line 16b of Form 1040 (line 12b of Form 1040A) if the distribution isn't an IRA, and to line 15b of Form 1040 (line 11b of Form 1040A) if the distribution is an IRA. If the gross and taxable amounts on the Form 1040 (or Form 1040A) are the same, only the taxable amount appears.
A rollover can include the entire distribution or only part of the distribution.
If you roll over the entire distribution, we carry the gross amount from Box 1 of the Form 1099-R to line 16a of Form 1040 (line 12a of Form 1040A) if the distribution isn't an IRA, and to line 15a of Form 1040 (line 11a of Form 1040A) if the distribution is an IRA. We don't add anything to the taxable amount on line 16b of Form 1040 (line 12b of Form 1040A), or to line 15b of Form 1040 (line 11b of Form 1040A).
If you roll over only part of the distribution, we once again carry the gross amount from Box 1 of the Form 1099-R to line 16a of Form 1040 (line 12a of Form 1040A) if the distribution isn't an IRA, and to line 15a of Form 1040 (line 11a of Form 1040A) if the distribution is an IRA. For non-IRA distributions, we include in the taxable amount on line 16b of Form 1040 (line 12b of Form 1040A) the taxable amount from line 2a of Form 1099-R, less the amount from line 2 of the special rollovers section of the Form 1099-R Worksheet.
For partial rollovers of IRA distributions where Box 1 in the IRA Distributions section of the Form 1099-R Worksheet isn't checked, we include in the taxable amount on line 15b of Form 1040 (line 11b of Form 1040A) the gross distribution from line 1 of Form 1099-R, less the amount from line 2 in the Rollovers section of the Form 1099-R Worksheet. If Box 1 in the IRA Distributions section of the Form 1099-R Worksheet is checked, the partial rollover flows through Form 8606.
Information about IRA's carries to lines 15a and 15b of Form 1040 (lines 11a and 11b of Form 1040A). If Box 1 in the IRA Distributions section is "X'd," the calculations pass through Form 8606 first.
If you are the recipient of a lump-sum distribution and you meet all the necessary requirements, you may be able to elect 20% capital gain treatment and/or special averaging treatment for the distribution.
You'll be eligible for capital gain treatment and/or special averaging only if:
You answer Yes to question 1
You answer No to question 2
You answer Yes to either (but not both) question 3 or to question 4
If you answered Yes to question 4, you answer No to question 5a
If you answered Yes to question 3, you answer No to question 5b
While we have you make the elections here on the Form 1099-R Worksheet, the actual calculations for the 20% capital election and special averaging are made on Form 4972.
If Box 1 in the "Disability Payments, Charitable Gift Annuities and Other Distributions" section is checked, we carry the distribution to line 7a on Form 1040 (line 7a on Form 1040A).