Instructions for IRS Forms 1099-r and 5498 - Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, Iras, Insurance Contracts, Etc. and Ira Contribution Information 2017

January 1, 2017 "Instructions For Forms 1099-r And 5498 - Distributions From Pensions, Annuities, Retirement Or Profit-sharing Plans, Iras, Insurance Contracts, Etc. And Ira Contribution Information" contain the latest filing requirements for the IRS-issued Form 1099-R. Download your copy of the instructions by clicking the link below.

IRS Form 1099-R is tax form released and collected by the Internal Revenue Service of the United States.

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2017
Department of the Treasury
Internal Revenue Service
Instructions for Forms
1099-R and 5498
Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc., and IRA Contribution Information
Section references are to the Internal Revenue Code
Reportable disability payments made from a retirement
unless otherwise noted.
plan must be reported on Form 1099-R.
Future Developments
Generally, do not report payments subject to
withholding of social security and Medicare taxes on this
For the latest information about developments related to
form. Report such payments on Form W-2, Wage and Tax
Forms 1099-R and 5498 and their instructions, such as
Statement.
legislation enacted after they were published, go to
www.irs,gov/form1099r
or www.irs.gov/form5498.
Generally, do not report amounts totally exempt from
What’s New
tax, such as workers' compensation and Department of
Veterans Affairs (VA) payments. However, if part of the
Reporting late rollover contributions to an IRA.
distribution is taxable and part is nontaxable, report the
Report late rollover contributions certified by the
entire distribution in box 1 and the taxable part in box 2a
participant in boxes 13a and 13b on Form 5498. Report
when known.
the self-certification code in box 13c.
There is no special reporting for qualified
Reminder
charitable distributions under section 408(d)(8),
TIP
qualified health savings account (HSA) funding
In addition, see the 2017 General Instructions for Certain
distributions described in section 408(d)(9), or for the
Information Returns for information on the following
payment of qualified health insurance premiums
topics.
(including long-term care insurance premiums) for retired
Who must file (nominee/middleman; certain FFIs and
public safety officers described in section 402(l).
U.S. payers that report on Form(s) 1099 to satisfy their
chapter 4 reporting requirements).
Military retirement annuities. Report payments to
When and where to file.
military retirees or payments of survivor benefit annuities
Electronic reporting requirements.
on Form 1099-R. Report military retirement pay awarded
Corrected and void returns.
as a property settlement to a former spouse under the
Statements to recipients.
name and taxpayer identification number (TIN) of the
Taxpayer identification numbers.
recipient, not that of the military retiree.
Backup withholding.
Penalties.
Use Code 7 in box 7 for reporting military pensions
The definitions of terms applicable for chapter 4
or survivor benefit annuities. Use Code 4 for
!
purposes that are referenced in these instructions.
reporting death benefits paid to a survivor
CAUTION
Other general topics.
beneficiary on a separate Form 1099-R. Do not combine
with any other codes.
You can get the general instructions at
General
Instructions for Certain Information Returns
or
Governmental section 457(b) plans. Report on Form
www.irs.gov/form1099r
or www.irs.gov/form5498.
1099-R, not Form W-2, income tax withholding and
Specific Instructions for Form 1099-R
distributions from a governmental section 457(b) plan
maintained by a state or local government employer.
File Form 1099-R, Distributions From Pensions, Annuities,
Distributions from a governmental section 457(b) plan to a
Retirement or Profit-Sharing Plans, IRAs, Insurance
participant or beneficiary include all amounts that are paid
Contracts, etc., for each person to whom you have made
from the plan. For more information, see Notice 2003-20
a designated distribution or are treated as having made a
on page 894 of Internal Revenue Bulletin 2003-19, at
distribution of $10 or more from profit-sharing or
www.irs.gov/pub/irs-irbs/irb03-19.pdf. Also see
retirement plans, any individual retirement arrangements
Governmental section 457(b) plan distributions, later, for
(IRAs), annuities, pensions, insurance contracts, survivor
information on distribution codes.
income benefit plans, permanent and total disability
Nonqualified plans. Report any reportable distributions
payments under life insurance contracts, charitable gift
from commercial annuities. Report distributions to
annuities, etc.
employee plan participants from section 409A
Also, report on Form 1099-R death benefit payments
nonqualified deferred compensation plans and eligible
made by employers that are not made as part of a
nongovernmental section 457(b) plans on Form W-2, not
pension, profit-sharing, or retirement plan. See Box 1,
on Form 1099-R; for nonemployees, these payments are
later.
reportable on Form 1099-MISC. Also, report distributions
to beneficiaries of deceased plan participants on Form
Dec 09, 2016
Cat. No. 27987M
2017
Department of the Treasury
Internal Revenue Service
Instructions for Forms
1099-R and 5498
Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc., and IRA Contribution Information
Section references are to the Internal Revenue Code
Reportable disability payments made from a retirement
unless otherwise noted.
plan must be reported on Form 1099-R.
Future Developments
Generally, do not report payments subject to
withholding of social security and Medicare taxes on this
For the latest information about developments related to
form. Report such payments on Form W-2, Wage and Tax
Forms 1099-R and 5498 and their instructions, such as
Statement.
legislation enacted after they were published, go to
www.irs,gov/form1099r
or www.irs.gov/form5498.
Generally, do not report amounts totally exempt from
What’s New
tax, such as workers' compensation and Department of
Veterans Affairs (VA) payments. However, if part of the
Reporting late rollover contributions to an IRA.
distribution is taxable and part is nontaxable, report the
Report late rollover contributions certified by the
entire distribution in box 1 and the taxable part in box 2a
participant in boxes 13a and 13b on Form 5498. Report
when known.
the self-certification code in box 13c.
There is no special reporting for qualified
Reminder
charitable distributions under section 408(d)(8),
TIP
qualified health savings account (HSA) funding
In addition, see the 2017 General Instructions for Certain
distributions described in section 408(d)(9), or for the
Information Returns for information on the following
payment of qualified health insurance premiums
topics.
(including long-term care insurance premiums) for retired
Who must file (nominee/middleman; certain FFIs and
public safety officers described in section 402(l).
U.S. payers that report on Form(s) 1099 to satisfy their
chapter 4 reporting requirements).
Military retirement annuities. Report payments to
When and where to file.
military retirees or payments of survivor benefit annuities
Electronic reporting requirements.
on Form 1099-R. Report military retirement pay awarded
Corrected and void returns.
as a property settlement to a former spouse under the
Statements to recipients.
name and taxpayer identification number (TIN) of the
Taxpayer identification numbers.
recipient, not that of the military retiree.
Backup withholding.
Penalties.
Use Code 7 in box 7 for reporting military pensions
The definitions of terms applicable for chapter 4
or survivor benefit annuities. Use Code 4 for
!
purposes that are referenced in these instructions.
reporting death benefits paid to a survivor
CAUTION
Other general topics.
beneficiary on a separate Form 1099-R. Do not combine
with any other codes.
You can get the general instructions at
General
Instructions for Certain Information Returns
or
Governmental section 457(b) plans. Report on Form
www.irs.gov/form1099r
or www.irs.gov/form5498.
1099-R, not Form W-2, income tax withholding and
Specific Instructions for Form 1099-R
distributions from a governmental section 457(b) plan
maintained by a state or local government employer.
File Form 1099-R, Distributions From Pensions, Annuities,
Distributions from a governmental section 457(b) plan to a
Retirement or Profit-Sharing Plans, IRAs, Insurance
participant or beneficiary include all amounts that are paid
Contracts, etc., for each person to whom you have made
from the plan. For more information, see Notice 2003-20
a designated distribution or are treated as having made a
on page 894 of Internal Revenue Bulletin 2003-19, at
distribution of $10 or more from profit-sharing or
www.irs.gov/pub/irs-irbs/irb03-19.pdf. Also see
retirement plans, any individual retirement arrangements
Governmental section 457(b) plan distributions, later, for
(IRAs), annuities, pensions, insurance contracts, survivor
information on distribution codes.
income benefit plans, permanent and total disability
Nonqualified plans. Report any reportable distributions
payments under life insurance contracts, charitable gift
from commercial annuities. Report distributions to
annuities, etc.
employee plan participants from section 409A
Also, report on Form 1099-R death benefit payments
nonqualified deferred compensation plans and eligible
made by employers that are not made as part of a
nongovernmental section 457(b) plans on Form W-2, not
pension, profit-sharing, or retirement plan. See Box 1,
on Form 1099-R; for nonemployees, these payments are
later.
reportable on Form 1099-MISC. Also, report distributions
to beneficiaries of deceased plan participants on Form
Dec 09, 2016
Cat. No. 27987M
1099-MISC. See the Instructions for Form 1099-MISC for
in a designated distribution, and (c) the company
more information.
maintains adequate records of the policyholder's basis in
the contracts. For example, a life insurance contract
Section 404(k) dividends. Distributions of section
issued by Company X received in exchange solely for
404(k) dividends from an employee stock ownership plan
another life insurance contract previously issued by
(ESOP), including a tax credit ESOP, are reported on
Company X does not have to be reported on Form 1099-R
Form 1099-R. Distributions other than section 404(k)
as long as the company maintains the required records.
dividends from the plan must be reported on a separate
See Rev. Proc. 92-26, 1992-1 C.B. 744, for certain
Form 1099-R.
exchanges for which reporting is not required under
Section 404(k) dividends paid directly from the
section 6047(d). Also see Rev. Rul. 2007-24, 2007-21
corporation to participants or their beneficiaries are
I.R.B. 1282, available at
www.irs.gov/irb/2007-21_IRB/
reported on Form 1099-DIV. See Announcement
ar15.html
for certain transactions that do not qualify as
2008-56, 2008-26 I.R.B. 1192, available at
www.irs.gov/
tax-free exchanges. For more information on partial
irb/2008-26_IRB/ar11.html.
exchanges of annuity contracts, see Rev. Proc. 2011-38,
2011-30 I.R.B. 66, available at
www.irs.gov/irb/
Charitable gift annuities. If cash or capital gain property
2011-30_IRB/ar09.html.
is donated in exchange for a charitable gift annuity, report
distributions from the annuity on Form 1099-R. See
For more information on reporting taxable exchanges,
Charitable gift annuities, later.
see Box 1, later.
Life insurance, annuity, and endowment contracts.
Prohibited transactions. If an IRA owner engages in a
Report payments of matured or redeemed annuity,
prohibited transaction with respect to an IRA, the assets of
endowment, and life insurance contracts. However, you
the IRA are treated as distributed on the first day of the tax
do not need to file Form 1099-R to report the surrender of
year in which the prohibited transaction occurs. IRAs that
a life insurance contract if it is reasonable to believe that
hold non-marketable securities and/or closely held
none of the payment is includible in the income of the
investments, in which the IRA owner effectively controls
recipient. If you are reporting the surrender of a life
the underlying assets of such securities or investments,
insurance contract, see Code 7, later. See, however, Box
have a greater potential for resulting in a prohibited
1, later, for FFIs reporting in a manner similar to section
transaction. Enter Code 5 in box 7.
6047(d) for chapter 4 purposes.
Designated Roth Account Contributions
Report premiums paid by a trustee or custodian for the
An employer offering a section 401(k), 403(b), or
cost of current life or other insurance protection. Costs of
governmental section 457(b) plan may allow participants
current life insurance protection are not subject to the 10%
to contribute all or a portion of the elective deferrals they
additional tax under section 72(t). See Cost of current life
are otherwise eligible to make to a separate designated
insurance protection, later.
Roth account established under the plan. Contributions
Report charges or payments for a qualified long-term
made under a section 401(k) plan must meet the
care insurance contract against the cash value of an
requirements of Regulations section 1.401(k)-1(f)
annuity contract or the cash surrender value of a life
(Regulations section 1.403(b)-3(c) for a section 403(b)
insurance contract, which is excludable from gross
plan). Under the terms of the section 401(k) plan, section
income under section 72(e)(11). See Code W, later.
403(b) plan, or governmental section 457(b) plan, the
Section 1035 exchange. A tax-free section 1035
designated Roth account must meet the requirements of
exchange is the exchange of (a) a life insurance contract
section 402A.
for another life insurance contract, or for an endowment or
annuity contract, or for a qualified long-term care
A separate Form 1099-R must be used to report
insurance contract; or (b) a contract of endowment
the total annual distribution from a designated
!
insurance for another contract of endowment insurance
Roth account.
CAUTION
that provides for regular payments to begin no later than
Distributions allocable to an in-plan Roth rollover
they would have begun under the old contract, or for an
(IRR). The distribution of an amount allocable to the
annuity contract, or for a qualified long-term care
taxable amount of an in-plan Roth rollover (IRR), made
insurance contract; or (c) an annuity contract for an
within the 5-year period beginning with the first day of the
annuity contract or for a qualified long-term care insurance
participant’s tax year in which the rollover was made, is
contract; or (d) a qualified long-term care insurance
treated as includible in gross income for purposes of
contract for a qualified long-term care insurance contract.
applying section 72(t) to the distribution. The total amount
A contract shall not fail to be treated as an annuity
allocable to such an IRR is reported in box 10. See the
contract or as a life insurance contract solely because a
instructions for Box 10, later. An IRR is a rollover within a
qualified long-term care insurance contract is a part of or a
retirement plan to a designated Roth account in the same
rider on such contract. However, the distribution of other
plan. See Notice 2010-84, 2010-51 I.R.B. 872 available at
property or the cancellation of a contract loan at the time
www.irs.gov/irb/2015-51_IRB/ar11.html, modified by
of the exchange may be taxable and reportable on a
Notice 2013-74, 2013-52 I.R.B 819 available at
separate Form 1099-R.
www.irs.gov/irb/2013-52_IRB/ar11.html.
These exchanges of contracts are generally reportable
on Form 1099-R. However, reporting on Form 1099-R is
not required if (a) the exchange occurs within the same
company, (b) the exchange is solely a contract for
contract exchange, as defined above, that does not result
-2-
Instructions for Forms 1099-R and 5498 (2017)
IRA Distributions
Program requirements described in section 326 of the
USA PATRIOT Act, the distribution from the IRA must be
For deemed IRAs under section 408(q), use the
reported. In addition, Form 5498, IRA Contribution
rules that apply to traditional IRAs or Roth IRAs as
TIP
Information, must be filed to report any regular, rollover,
applicable. Simplified employee pension (SEP)
Roth IRA conversion, SEP IRA, or SIMPLE IRA
IRAs and savings incentive match plan for employees
contribution to an IRA that is subsequently revoked or
(SIMPLE) IRAs, however, may not be used as deemed
closed by the trustee or custodian.
IRAs.
If a regular contribution is made to a traditional or Roth
IRA that later is revoked or closed, and a distribution is
Deemed IRAs. For more information on deemed IRAs in
made to the taxpayer, enter the gross distribution in
qualified employer plans, see Regulations section
box 1. If no earnings are distributed, enter 0 (zero) in
1.408(q)-1.
box 2a and Code 8 in box 7 for a traditional IRA and Code
IRAs other than Roth IRAs. Unless otherwise
J for a Roth IRA. If earnings are distributed, enter the
instructed, distributions from any IRA that is not a Roth
amount of earnings in box 2a. For a traditional IRA, enter
IRA must be reported in boxes 1 and 2a. Check the
Codes 1 and 8, if applicable, in box 7; for a Roth IRA,
“Taxable amount not determined” box in box 2b. But see:
enter Codes J and 8, if applicable. These earnings could
Traditional, SEP, or SIMPLE IRA, later, for how to report
be subject to the 10% early distribution tax under section
the withdrawal of IRA contributions under section 408(d)
72(t). If a rollover contribution is made to a traditional or
(4);
Roth IRA that later is revoked or closed, and distribution is
Transfers, later, for information on trustee-to-trustee
made to the taxpayer, enter in boxes 1 and 2a of Form
transfers, including recharacterizations;
1099-R the gross distribution and the appropriate code in
Reporting a corrective distribution from an IRA under
box 7 (Code J for a Roth IRA). Follow this same
section 408(d)(5), later;
procedure for a transfer from a traditional or Roth IRA to
Reporting IRA revocations or account closures due to
another IRA of the same type that later is revoked or
Customer Identification Program failures, later; and
closed. The distribution could be subject to the 10% early
Reporting a transfer from a SIMPLE IRA to a
distribution tax under section 72(t).
non-SIMPLE IRA within the first 2 years of plan
If an IRA conversion contribution or a rollover from a
participation, later.
qualified plan is made to a Roth IRA that later is revoked
The direct rollover provisions beginning later do not
or closed, and a distribution is made to the taxpayer, enter
apply to distributions from any IRA. However, taxable
the gross distribution in box 1 of Form 1099-R. If no
distributions from traditional IRAs and SEP IRAs may be
earnings are distributed, enter 0 (zero) in box 2a and
rolled over into an eligible retirement plan. See section
Code J in box 7. If earnings are distributed, enter the
408(d)(3). SIMPLE IRAs may also be rolled over into an
amount of the earnings in box 2a and Code J in box 7.
eligible retirement plan, but only after the 2-year period
These earnings could be subject to the 10% early
described in section 72(t)(6).
distribution tax under section 72(t).
An IRA includes all investments under one IRA plan or
If an employer SEP IRA or SIMPLE IRA plan
account. File only one Form 1099-R for distributions from
contribution is made and the SEP IRA or SIMPLE IRA is
all investments under one plan that are paid in 1 year to
revoked by the employee or is closed by the trustee or
one recipient, unless you must enter different codes in
custodian, report the distribution as fully taxable.
box 7. You do not have to file a separate Form 1099-R for
each distribution under the plan.
For more information on IRAs that have been revoked,
see Rev. Proc. 91-70, 1991-2 C.B. 899.
Roth IRAs. For distributions from a Roth IRA, report the
gross distribution in box 1 but generally leave box 2a
Deductible Voluntary Employee Contributions
blank. Check the “Taxable amount not determined” box in
(DVECs)
box 2b. Enter Code J, Q, or T as appropriate in box 7. Do
not use any other codes with Code Q or Code T. You may
If you are reporting a total distribution from a plan that
enter Code 8 or P with Code J. For the withdrawal of
includes a distribution of DVECs, you may file a separate
excess contributions, see Roth IRA, later. It is not
Form 1099-R to report the distribution of DVECs. If you
necessary to mark the IRA/SEP/SIMPLE checkbox.
do, report the distribution of DVECs in boxes 1 and 2a on
the separate Form 1099-R. For the direct rollover
Roth IRA conversions. You must report a traditional,
(explained later) of funds that include DVECs, a separate
SEP, or SIMPLE IRA distribution that you know is
Form 1099-R is not required to report the direct rollover of
converted this year to a Roth IRA in boxes 1 and 2a
the DVECs.
(checking box 2b “Taxable amount not determined”
unless otherwise directed elsewhere in these
Direct Rollovers
instructions), even if the conversion is a trustee-to-trustee
You must report a direct rollover of an eligible rollover
transfer or is with the same trustee. Enter Code 2 or 7 in
distribution. A direct rollover is the direct payment of the
box 7 depending on the participant's age.
distribution from a qualified plan, a section 403(b) plan, or
a governmental section 457(b) plan to a traditional IRA,
IRA Revocation or Account Closure
Roth IRA, or other eligible retirement plan. For additional
If a traditional or Roth IRA is revoked during its first 7 days
rules regarding the treatment of direct rollovers from
(under Regulations section 1.408-6(d)(4)(ii)) or is closed
designated Roth accounts, see Designated Roth
at any time by the IRA trustee or custodian due to a failure
accounts, later. A direct rollover may be made for the
of the taxpayer to satisfy the Customer Identification
employee, for the employee's surviving spouse, for the
-3-
Instructions for Forms 1099-R and 5498 (2017)
spouse or former spouse who is an alternate payee under
12. Prohibited allocations of securities in an S
a qualified domestic relations order (QDRO) or for a
corporation that are treated as deemed distributions.
nonspouse designated beneficiary, in which case the
13. Distributions of premiums for accident or health
direct rollover can only be made to an inherited IRA. If the
insurance under Regulations section 1.402(a)-1(e).
distribution is paid to the surviving spouse, the distribution
Amounts paid under an annuity contract purchased for
is treated in the same manner as if the spouse were the
and distributed to a participant under a qualified plan can
employee. See Part V of Notice 2007-7, 2007-5 I.R.B.
qualify as eligible rollover distributions. See Regulations
395, available at www.irs.gov/irb/2007-05_IRB/ar11.html,
section 1.402(c)-2, Q/A-10.
which has been modified by Notice 2009-82, 2009-41
I.R.B. 491, available at
www.irs.gov/irb/2009-41_IRB/
Automatic rollovers. Eligible rollover distributions may
ar12.html
for guidance on direct rollovers by nonspouse
also include involuntary distributions that are more than
designated beneficiaries. See also Notice 2008-30, Part II,
$1,000 but $5,000 or less and are made from a qualified
2008-12 I.R.B. 638, available at
www.irs.gov/irb/
plan to an IRA on behalf of a plan participant. Involuntary
2008-12_IRB/ar11.html, which has been amplified and
distributions are generally subject to the automatic rollover
clarified by Notice 2009-75, 2009-39 I.R.B. 436, available
provisions of section 401(a)(31)(B) and must be paid in a
at www.irs.gov/irb/2009-39_IRB/ar15.html, for questions
direct rollover to an IRA, unless the plan participant elects
and answers covering rollover contributions to Roth IRAs.
to receive the distribution directly.
Notice 2007-7 and Notice 2008-30 do not reflect
For information on the notification requirements, see
changes made to section 402 by the Worker,
Explanation to Recipients Before Eligible Rollover
!
Retiree, and Employer Recovery Act of 2008.
Distributions (Section 402(f) Notice), later. For additional
CAUTION
information, also see Notice 2005-5, 2005-3 I.R.B. 337,
An eligible rollover distribution is any distribution of all
available at www.irs.gov/irb/2005-03_IRB/ar10.html,
or any portion of the balance to the credit of the employee
modified by Notice 2005-95, 2005-51 I.R.B. 1172,
(including net unrealized appreciation (NUA)) from a
available at www.irs.gov/irb/2005-51_IRB/ar12.html.
qualified plan, a section 403(b) plan, or a governmental
Reporting a direct rollover. Report a direct rollover in
section 457(b) plan except the following.
box 1 and a 0 (zero) in box 2a, unless the rollover is a
1. One of a series of substantially equal periodic
direct rollover of a qualified rollover contribution other than
payments made at least annually over:
from a designated Roth account. See Qualified rollover
a. The life of the employee or the joint lives of the
contributions as defined in section 408A(e), later. You do
employee and the employee's designated beneficiary,
not have to report capital gain in box 3 or NUA in box 6.
Enter Code G in box 7 unless the rollover is a direct
b. The life expectancy of the employee or the joint life
rollover from a designated Roth account to a Roth IRA.
and last survivor expectancy of the employee and the
See Designated Roth accounts, later. If the direct rollover
employee's designated beneficiary, or
is made by a nonspouse designated beneficiary, also
c. A specified period of 10 years or more.
enter Code 4 in box 7.
2. A required minimum distribution (RMD) under
Prepare the form using the name and social security
section 401(a)(9). A plan administrator is permitted to
number (SSN) of the person for whose benefit the funds
assume there is no designated beneficiary for purposes of
were rolled over (generally the participant), not those of
determining the minimum distribution.
the trustee of the traditional IRA or other plan to which the
3. Elective deferrals (under section 402(g)(3)) and
funds were rolled.
employee contributions (including earnings on each)
If part of the distribution is a direct rollover and part is
returned because of the section 415 limits.
distributed to the recipient, prepare two Forms 1099-R.
4. Corrective distributions of excess deferrals (under
For guidance on allocation of after-tax amounts to
section 402(g)) and earnings.
rollovers, see Notice 2014-54, 2014-41, I.R.B. 670,
5. Corrective distributions of excess contributions
available at www.irs.gov/irb/2014-41_IRB/ar11.html.
under a qualified cash or deferred arrangement (under
For more information on eligible rollover distributions,
section 401(k)) and excess aggregate contributions
including substantially equal periodic payments, RMDs,
(under section 401(m)) and earnings.
and plan loan offset amounts, see Regulations sections
6. Loans treated as deemed distributions (under
1.402(c)-2 and 1.403(b)-7(b). See Rev. Rul. 2014-9,
section 72(p)). However, plan loan offset amounts can be
2014-17 I.R.B. 975, available at
www.irs.gov/irb/
eligible rollover distributions. See Regulations section
2014-17_IRB/ar05.html, for information on rollovers to
1.402(c)-2, Q/A-9.
qualified plans. Also, see Rev. Rul. 2002-62, which is on
page 710 of Internal Revenue Bulletin 2002-42 at
7. Section 404(k) dividends.
www.irs.gov/pub/irs-irbs/irb02-42.pdf
for guidance on
8. Cost of current life insurance protection.
substantially equal periodic payments.
9. Distributions to a payee other than the employee,
the employee's surviving spouse, a spouse or former
spouse who is an alternate payee under a QDRO, or a
nonspouse designated beneficiary.
10. Any hardship distribution.
11. A permissible withdrawal under section 414(w).
-4-
Instructions for Forms 1099-R and 5498 (2017)
A rollover contribution to a Roth IRA from an eligible
For information on distributions of amounts
retirement plan (other than an IRA) that meets the
attributable to rollover contributions separately
TIP
requirements of section 408A(e)(1)(B).
accounted for by an eligible retirement plan and if
For reporting a rollover from an IRA other than a Roth
permissible timing restrictions apply, see Rev. Rul.
IRA to a Roth IRA, see Roth IRA conversions, earlier and
2004-12, 2004-7 I.R.B. 478, available at
www.irs.gov/irb/
later.
2004-07_IRB/ar08.html, modified by Notice 2013-74,
2013-52 I.R.B. 819, available at
www.irs.gov/irb/
For a direct rollover of an eligible rollover distribution to
2013-52_IRB/ar11.html.
a Roth IRA (other than from a designated Roth account),
report the total amount rolled over in box 1, the taxable
Designated Roth accounts. A direct rollover from a
amount in box 2a, and any basis recovery amount in
designated Roth account may only be made to another
box 5. (See the instructions for Box 5, later.) Use Code G
designated Roth account or to a Roth IRA. A distribution
in box 7. If the direct rollover is made on behalf of a
from a Roth IRA, however, cannot be rolled over into a
nonspouse designated beneficiary, also enter Code 4 in
designated Roth account. In addition, a plan is permitted
box 7.
to treat the balance of the participant's designated Roth
For reporting instructions for a direct rollover from a
account and the participant's other accounts under the
designated Roth account, see Designated Roth accounts,
plan as accounts held under two separate plans for
earlier.
purposes of applying the automatic rollover rules of
section 401(a)(31)(B) and Q/A-9 through Q/A-11 of
Explanation to Recipients Before Eligible
Regulations section 1.401(a)(31)-1. Thus, if a participant's
Rollover Distributions (Section 402(f) Notice)
balance in the designated Roth account is less than $200,
the plan is not required to offer a direct rollover election or
For qualified plans, section 403(b) plans, and
to apply the automatic rollover provisions to such balance.
governmental section 457(b) plans, the plan administrator
must provide to each recipient of an eligible rollover
A distribution from a designated Roth account that is a
distribution an explanation using either a written paper
qualified distribution is tax free. A qualified distribution is a
document or an electronic medium (section 402(f) notice).
payment that is made both after age 59
(or after death or
1
2
The explanation must be provided no more than 180 days
disabililty) and after the 5-taxable-year period that begins
and no fewer than 30 days before making an eligible
with the first day of the first taxable year in which the
rollover distribution or before the annuity starting date.
employee makes a contribution to the designated Roth
However, if the recipient who has received the section
account. Certain amounts, including corrective
402(f) notice affirmatively elects a distribution, you will not
distributions, cannot be qualified distributions. See
fail to satisfy the timing requirements merely because you
Regulations section 1.402A-1.
make the distribution fewer than 30 days after you
If any portion of a distribution from a designated Roth
provided the notice as long as you meet the requirements
account that is not includible in gross income is to be
of Regulations section 1.402(f)-1, Q/A-2. The electronic
rolled over into a designated Roth account under another
section 402(f) notice must meet the requirements for
plan, the rollover must be accomplished by a direct
using electronic media in Regulations section 1.401(a)-21.
rollover. Any portion not includible in gross income that is
distributed to the employee, however, cannot be rolled
The notice must explain the rollover rules, the special
over to another designated Roth account, though it can be
tax treatment for certain lump-sum distributions, the direct
rolled over into a Roth IRA within the 60-day period
rollover option (and any default procedures), the
described in section 402(c)(3). In the case of a direct
mandatory 20% withholding rules, and an explanation of
rollover, the distributing plan is required to report to the
how distributions from the plan to which the rollover is
recipient plan the amount of the investment (basis) in the
made may have different restrictions and tax
contract and the first year of the 5-taxable-year period, or
consequences than the plan from which the rollover is
that the distribution is a qualified distribution.
made.
For a direct rollover of a distribution from a designated
For periodic payments that are eligible rollover
Roth account to a Roth IRA, enter the amount rolled over
distributions, you must provide the notice before the first
in box 1 and 0 (zero) in box 2a. Use Code H in box 7. For
payment and at least once a year as long as the payments
all other distributions from a designated Roth account, use
continue. For section 403(b) plans, the payer must
Code B in box 7, unless Code E applies. If the direct
provide an explanation of the direct rollover option within
rollover is from one designated Roth account to another
the time period described earlier or some other
designated Roth account, also enter Code G in box 7.
reasonable period of time.
For a direct rollover of a distribution from a section
Notice 2009-68, 2009-39 I.R.B. 423, available at
401(k) plan, a section 403(b) plan, or a governmental
www.irs.gov/irb/2009-39_IRB/ar14.html, modified by
section 457(b) plan to a designated Roth account in the
Notice 2014-74, 2014-50 I.R.B. 937, available at
same plan, enter the amount rolled over in box 1, the
www.irs.gov/irb/2014-50_IRB/ar09.html, contains two
taxable amount in box 2a, and any basis recovery amount
safe harbor explanations that may be provided to
in box 5. Use Code G in box 7.
recipients of eligible rollover distributions from an
Qualified rollover contributions as defined in
employer plan in order to satisfy section 402(f).
section 408A(e). A qualified rollover contribution as
Involuntary distributions. For involuntary distributions
defined in section 408A(e) is:
paid to an IRA in a direct rollover (automatic rollover), you
A rollover contribution to a Roth IRA from another IRA
may satisfy the notification requirements of section 401(a)
that meets the requirements of section 408(d)(3), or
(31)(B)(i) either separately or as a part of the section
-5-
Instructions for Forms 1099-R and 5498 (2017)

Download Instructions for IRS Forms 1099-r and 5498 - Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, Iras, Insurance Contracts, Etc. and Ira Contribution Information 2017

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