Instructions for IRS Form 1099-R, 5498 "Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, Iras, Insurance Contracts, Etc."

This document contains official instructions for IRS Form 1099-R, and IRS Form 5498. Both forms are released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 1099-R is available for download through this link. An up-to-date fillable IRS Form 5498 is available for download through this link.

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Download Instructions for IRS Form 1099-R, 5498 "Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, Iras, Insurance Contracts, Etc."

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2019
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.
Section references are to the Internal Revenue Code
payments under life insurance contracts, charitable gift
unless otherwise noted.
annuities, etc.
Future Developments
Also, report on Form 1099-R death benefit payments
made by employers that are not made as part of a
For the latest information about developments related to
pension, profit-sharing, or retirement plan. See
Box
1,
Forms 1099-R and 5498 and their instructions, such as
later.
legislation enacted after they were published, go to
IRS.gov/Form1099R
or IRS.gov/Form5498.
Payments of reportable death benefits in accordance
with final regulations that will be published under section
What’s New
6050Y must be reported on Form 1099-R.
Escheat to state. Payments from IRAs to state
Reportable disability payments made from a retirement
unclaimed property funds under escheat laws must be
plan must be reported on Form 1099-R.
reported on Form 1099-R. See
IRA
escheatment, later.
Generally, do not report payments subject to
Reminders
withholding of social security and Medicare taxes on this
In addition, see the 2019 General Instructions for Certain
form. Report such payments on Form W-2, Wage and Tax
Information Returns for information on the following
Statement.
topics.
Generally, do not report amounts totally exempt from
Who must file (certain Foreign Financial Institutions
tax, such as workers' compensation and Department of
(FFIs) and U.S. payers that report on Form(s) 1099 to
Veterans Affairs (VA) payments. However, if part of the
satisfy their chapter 4 reporting requirements).
distribution is taxable and part is nontaxable, report the
When and where to file.
entire distribution in box 1 and the taxable part in box 2a
Electronic reporting.
when known.
Corrected and void returns.
Statements to recipients.
There is no special reporting for qualified
Taxpayer identification numbers (TINs).
charitable distributions under section 408(d)(8),
TIP
Backup withholding.
qualified health savings account (HSA) funding
Penalties.
distributions described in section 408(d)(9), or for the
The definitions of terms applicable for chapter 4
payment of qualified health insurance premiums
purposes that are referenced in these instructions.
(including long-term care insurance premiums) for retired
Other general topics.
public safety officers described in section 402(l).
You can get the general instructions from
General
Reportable death benefits. Section 6050Y, which was
Instructions for Certain Information Returns
at
IRS.gov/
added to the Code by P.L. 115-97, imposes new
1099GeneralInstructions
or go to
IRS.gov/Form1099R
or
information reporting obligations for payments of
IRS.gov/Form5498.
reportable death benefits after December 31, 2017. The
Online fillable forms. To ease statement furnishing
term “reportable death benefits” means “amounts paid by
reason of the death of the insured under a life insurance
requirements, Copies B, C, D, 1, and 2 have been made
fillable online in a pdf format available at
IRS.gov/
contract that has been transferred in a reportable policy
sale.” The term “reportable policy sale” means “the
Form1099R
and IRS.gov/Form5498. You can complete
these copies online for furnishing statements to recipients
acquisition of an interest in a life insurance contract,
directly or indirectly, if the acquirer has no substantial
and for retaining in your own files.
family, business, or financial relationship with the insured
Specific Instructions for Form 1099-R
apart from the acquirer's interest in such life insurance
File Form 1099-R, Distributions From Pensions, Annuities,
contract.” Under section 6050Y, the payer of a reportable
Retirement or Profit-Sharing Plans, IRAs, Insurance
death benefit must file a return setting forth the date and
Contracts, etc., for each person to whom you have made
gross amount of each such payment and the payer's
a designated distribution or are treated as having made a
estimate of the buyer's investment in the contract within
distribution of $10 or more from profit-sharing or
the meaning of section 72(e)(6). For reportable policy
retirement plans, any individual retirement arrangements
sales occurring after December 31, 2017, and before the
(IRAs), annuities, pensions, insurance contracts, survivor
date final regulations under section 6050Y are published
income benefit plans, permanent and total disability
in the Federal Register, the Department of Treasury and
Dec 18, 2018
Cat. No. 27987M
2019
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.
Section references are to the Internal Revenue Code
payments under life insurance contracts, charitable gift
unless otherwise noted.
annuities, etc.
Future Developments
Also, report on Form 1099-R death benefit payments
made by employers that are not made as part of a
For the latest information about developments related to
pension, profit-sharing, or retirement plan. See
Box
1,
Forms 1099-R and 5498 and their instructions, such as
later.
legislation enacted after they were published, go to
IRS.gov/Form1099R
or IRS.gov/Form5498.
Payments of reportable death benefits in accordance
with final regulations that will be published under section
What’s New
6050Y must be reported on Form 1099-R.
Escheat to state. Payments from IRAs to state
Reportable disability payments made from a retirement
unclaimed property funds under escheat laws must be
plan must be reported on Form 1099-R.
reported on Form 1099-R. See
IRA
escheatment, later.
Generally, do not report payments subject to
Reminders
withholding of social security and Medicare taxes on this
In addition, see the 2019 General Instructions for Certain
form. Report such payments on Form W-2, Wage and Tax
Information Returns for information on the following
Statement.
topics.
Generally, do not report amounts totally exempt from
Who must file (certain Foreign Financial Institutions
tax, such as workers' compensation and Department of
(FFIs) and U.S. payers that report on Form(s) 1099 to
Veterans Affairs (VA) payments. However, if part of the
satisfy their chapter 4 reporting requirements).
distribution is taxable and part is nontaxable, report the
When and where to file.
entire distribution in box 1 and the taxable part in box 2a
Electronic reporting.
when known.
Corrected and void returns.
Statements to recipients.
There is no special reporting for qualified
Taxpayer identification numbers (TINs).
charitable distributions under section 408(d)(8),
TIP
Backup withholding.
qualified health savings account (HSA) funding
Penalties.
distributions described in section 408(d)(9), or for the
The definitions of terms applicable for chapter 4
payment of qualified health insurance premiums
purposes that are referenced in these instructions.
(including long-term care insurance premiums) for retired
Other general topics.
public safety officers described in section 402(l).
You can get the general instructions from
General
Reportable death benefits. Section 6050Y, which was
Instructions for Certain Information Returns
at
IRS.gov/
added to the Code by P.L. 115-97, imposes new
1099GeneralInstructions
or go to
IRS.gov/Form1099R
or
information reporting obligations for payments of
IRS.gov/Form5498.
reportable death benefits after December 31, 2017. The
Online fillable forms. To ease statement furnishing
term “reportable death benefits” means “amounts paid by
reason of the death of the insured under a life insurance
requirements, Copies B, C, D, 1, and 2 have been made
fillable online in a pdf format available at
IRS.gov/
contract that has been transferred in a reportable policy
sale.” The term “reportable policy sale” means “the
Form1099R
and IRS.gov/Form5498. You can complete
these copies online for furnishing statements to recipients
acquisition of an interest in a life insurance contract,
directly or indirectly, if the acquirer has no substantial
and for retaining in your own files.
family, business, or financial relationship with the insured
Specific Instructions for Form 1099-R
apart from the acquirer's interest in such life insurance
File Form 1099-R, Distributions From Pensions, Annuities,
contract.” Under section 6050Y, the payer of a reportable
Retirement or Profit-Sharing Plans, IRAs, Insurance
death benefit must file a return setting forth the date and
Contracts, etc., for each person to whom you have made
gross amount of each such payment and the payer's
a designated distribution or are treated as having made a
estimate of the buyer's investment in the contract within
distribution of $10 or more from profit-sharing or
the meaning of section 72(e)(6). For reportable policy
retirement plans, any individual retirement arrangements
sales occurring after December 31, 2017, and before the
(IRAs), annuities, pensions, insurance contracts, survivor
date final regulations under section 6050Y are published
income benefit plans, permanent and total disability
in the Federal Register, the Department of Treasury and
Dec 18, 2018
Cat. No. 27987M
the IRS intend to allow additional time after the date final
Report premiums paid by a trustee or custodian for the
regulations are published to file the returns required by
cost of current life or other insurance protection. Costs of
section 6050Y(c).
current life insurance protection are not subject to the 10%
additional tax under section 72(t). See
Cost of current life
Military retirement annuities. Report payments to
insurance
protection, later.
military retirees or payments of survivor benefit annuities
Report charges or payments for a qualified long-term
on Form 1099-R. Report military retirement pay awarded
care insurance contract against the cash value of an
as a property settlement to a former spouse under the
annuity contract or the cash surrender value of a life
name and TIN of the recipient, not that of the military
insurance contract, which is excludable from gross
retiree.
income under section 72(e)(11). See Code W, later.
Use Code 7 in box 7 for reporting military
Section 1035 exchange. A tax-free section 1035
pensions or survivor benefit annuities. Use Code
!
exchange is the exchange of (a) a life insurance contract
4 for reporting death benefits paid to a survivor
for another life insurance contract, or for an endowment or
CAUTION
beneficiary on a separate Form 1099-R. Do not combine
annuity contract, or for a qualified long-term care
with any other codes.
insurance contract or; (b) a contract of endowment
insurance for another contract of endowment insurance
Governmental section 457(b) plans. Report on Form
that provides for regular payments to begin no later than
1099-R, not Form W-2, income tax withholding and
they would have begun under the old contract, or for an
distributions from a section 457(b) plan maintained by a
annuity contract, or for a qualified long-term care
state or local government employer. Distributions from a
insurance contract or; (c) an annuity contract for an
governmental section 457(b) plan to a participant or
annuity contract or for a qualified long-term care insurance
beneficiary include all amounts that are paid from the
contract; or (d) a qualified long-term care insurance
plan. For more information, see Notice 2003-20 on
contract for a qualified long-term care insurance contract.
page 894 of Internal Revenue Bulletin 2003-19, at
A contract shall not fail to be treated as an annuity
IRS.gov/pub/irs-irbs/irb03-19.pdf. Also see
Governmental
contract or as a life insurance contract solely because a
section 457(b) plan
distributions, later, for information on
qualified long-term care insurance contract is a part of or a
distribution codes.
rider on such contract. However, the distribution of other
Nonqualified plans. Report any reportable distributions
property or the cancellation of a contract loan at the time
from commercial annuities. Report distributions to
of the exchange may be taxable and reportable on a
employee plan participants from section 409A
separate Form 1099-R.
nonqualified deferred compensation plans and eligible
These exchanges of contracts are generally reportable
nongovernmental section 457(b) plans on Form W-2, not
on Form 1099-R. However, reporting on Form 1099-R is
on Form 1099-R; for nonemployees, these payments are
not required if (a) the exchange occurs within the same
reportable on Form 1099-MISC. Also, report distributions
company; (b) the exchange is solely a contract for
to beneficiaries of deceased plan participants on Form
contract exchange, as defined above, that does not result
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
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
IRS.gov/irb/
tax-free exchanges. For more information on partial
2008-26_IRB/ar11.html.
exchanges of annuity contracts, see Rev. Proc. 2011-38,
Charitable gift annuities. If cash or capital gain property
2011-30 I.R.B. 66, available at
IRS.gov/irb/2011-30_IRB/
is donated in exchange for a charitable gift annuity, report
ar09.html.
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.
-2-
Instructions for Forms 1099-R and 5498 (2019)
Designated Roth Account Contributions
The direct rollover provisions beginning later do not
apply to distributions from any IRA. However, taxable
An employer offering a section 401(k), 403(b), or
distributions from traditional IRAs and SEP IRAs may be
governmental section 457(b) plan may allow participants
rolled over into an eligible retirement plan. See section
to contribute all or a portion of the elective deferrals they
408(d)(3). SIMPLE IRAs also may be rolled over into an
are otherwise eligible to make to a separate designated
eligible retirement plan, but only after the first 2 years of
Roth account established under the plan. Contributions
plan participation.
made under a section 401(k) plan must meet the
An IRA includes all investments under one IRA plan or
requirements of Regulations section 1.401(k)-1(f)
account. File only one Form 1099-R for distributions from
(Regulations section 1.403(b)-3(c) for a section 403(b)
all investments under one plan that are paid in 1 year to
plan). Under the terms of the section 401(k) plan, section
one recipient, unless you must enter different codes in
403(b) plan, or governmental section 457(b) plan, the
box 7. You do not have to file a separate Form 1099-R for
designated Roth account must meet the requirements of
each distribution under the plan.
section 402A.
Roth IRAs. For distributions from a Roth IRA, report the
A separate Form 1099-R must be used to report
gross distribution in box 1 but generally leave box 2a
the total annual distribution from a designated
!
blank. Check the “Taxable amount not determined” box in
Roth account.
CAUTION
box 2b. Enter Code J, Q, or T as appropriate in box 7. Do
Distributions allocable to an in-plan Roth rollover
not use any other codes with Code Q or Code T. You may
(IRR). The distribution of an amount allocable to the
enter Code 8 or P with Code J. For the withdrawal of
taxable amount of an IRR, made within the 5-year period
excess contributions, see
Roth
IRA, later. It is not
beginning with the first day of the participant’s tax year in
necessary to mark the IRA/SEP/SIMPLE checkbox.
which the rollover was made, is treated as includible in
Roth IRA conversions. You must report a traditional,
gross income for purposes of applying section 72(t) to the
SEP, or SIMPLE IRA distribution that you know is
distribution. The total amount allocable to such an IRR is
converted this year to a Roth IRA in boxes 1 and 2a
reported in box 10. See the instructions for
Box
10, later.
(checking box 2b “Taxable amount not determined”
An IRR is a rollover within a retirement plan to a
unless otherwise directed elsewhere in these
designated Roth account in the same plan. See Notice
instructions), even if the conversion is a trustee-to-trustee
2010-84, 2010-51 I.R.B. 872, available at
IRS.gov/irb/
transfer or is with the same trustee. Enter Code 2 or 7 in
2015-51_IRB/ar11.html, modified by Notice 2013-74,
box 7 depending on the participant's age.
2013-52 I.R.B. 819, available at
IRS.gov/irb/2013-52_IRB/
IRA escheatment. Payments made from IRAs on or after
ar11.html.
January 1, 2019, to state unclaimed property funds must
IRA Distributions
be reported on Form 1099-R. See Rev. Rul. 2018-17,
2018-25 I.R.B. 753, available at
IRS.gov/irb/
For deemed IRAs under section 408(q), use the
2018-25_IRB#RR-2018-17.
rules that apply to traditional IRAs or Roth IRAs,
TIP
as applicable. Simplified employee pension (SEP)
IRA Revocation or Account Closure
IRAs and savings incentive match plan for employees
If a traditional or Roth IRA is revoked during its first 7 days
(SIMPLE) IRAs, however, may not be used as deemed
(under Regulations section 1.408-6(d)(4)(ii)) or is closed
IRAs.
at any time by the IRA trustee or custodian due to a failure
of the taxpayer to satisfy the Customer Identification
Deemed IRAs. For more information on deemed IRAs in
Program requirements described in section 326 of the
qualified employer plans, see Regulations section
USA PATRIOT Act, the distribution from the IRA must be
1.408(q)-1.
reported. In addition, Form 5498, IRA Contribution
IRAs other than Roth IRAs. Unless otherwise
Information, must be filed to report any regular, rollover,
instructed, distributions from any IRA that is not a Roth
Roth IRA conversion, SEP IRA, or SIMPLE IRA
IRA must be reported in boxes 1 and 2a. Check the
contribution to an IRA that is subsequently revoked or
“Taxable amount not determined” box in box 2b. But see:
closed by the trustee or custodian.
Traditional, SEP, or SIMPLE
IRA, later, for how to report
If a regular contribution is made to a traditional or Roth
the withdrawal of IRA contributions under section 408(d)
IRA that later is revoked or closed, and a distribution is
(4);
made to the taxpayer, enter the gross distribution in
Transfers, later, for information on trustee-to-trustee
box 1. If no earnings are distributed, enter 0 (zero) in
transfers, including recharacterizations;
box 2a and Code 8 in box 7 for a traditional IRA and Code
Reporting a corrective distribution from an IRA under
J for a Roth IRA. If earnings are distributed, enter the
section 408(d)(5), see
Traditional, SEP, or SIMPLE
IRA,
amount of earnings in box 2a. For a traditional IRA, enter
later;
Codes 1 and 8, if applicable, in box 7; for a Roth IRA,
Reporting IRA revocations or account closures due to
enter Codes J and 8, if applicable. These earnings could
Customer Identification Program failures, see
IRA
be subject to the 10% early distribution tax under section
Revocation or Account
Closure, later; and
72(t). If a rollover contribution is made to a traditional or
Reporting a transfer from a SIMPLE IRA to a
Roth IRA that later is revoked or closed, and distribution is
non-SIMPLE IRA within the first 2 years of plan
made to the taxpayer, enter in boxes 1 and 2a of Form
participation, see
Traditional, SEP, or SIMPLE
IRA, later.
1099-R the gross distribution and the appropriate code in
-3-
Instructions for Forms 1099-R and 5498 (2019)
box 7 (Code J for a Roth IRA). Follow this same
Notice 2007-7 and Notice 2008-30 do not reflect
procedure for a transfer from a traditional or Roth IRA to
changes made to section 402 by the Worker,
!
another IRA of the same type that later is revoked or
Retiree, and Employer Recovery Act of 2008.
CAUTION
closed. The distribution could be subject to the 10% early
An eligible rollover distribution is any distribution of all
distribution tax under section 72(t).
or any portion of the balance to the credit of the employee
If an IRA conversion contribution or a rollover from a
(including net unrealized appreciation (NUA)) from a
qualified plan is made to a Roth IRA that later is revoked
qualified plan, a section 403(b) plan, or a governmental
or closed, and a distribution is made to the taxpayer, enter
section 457(b) plan except the following.
the gross distribution in box 1 of Form 1099-R. If no
1. One of a series of substantially equal periodic
earnings are distributed, enter 0 (zero) in box 2a and
payments made at least annually over:
Code J in box 7. If earnings are distributed, enter the
amount of the earnings in box 2a and Code J in box 7.
a. The life of the employee or the joint lives of the
These earnings could be subject to the 10% early
employee and the employee's designated beneficiary,
distribution tax under section 72(t).
b. The life expectancy of the employee or the joint life
and last survivor expectancy of the employee and the
If an employer SEP IRA or SIMPLE IRA plan
employee's designated beneficiary, or
contribution is made and the SEP IRA or SIMPLE IRA is
c. A specified period of 10 years or more.
revoked by the employee or is closed by the trustee or
custodian, report the distribution as fully taxable.
2. A required minimum distribution (RMD) under
section 401(a)(9). A plan administrator is permitted to
For more information on IRAs that have been revoked,
assume there is no designated beneficiary for purposes of
see Rev. Proc. 91-70, 1991-2 C.B. 899.
determining the minimum distribution.
Deductible Voluntary Employee Contributions
3. Elective deferrals (under section 402(g)(3)) and
(DVECs)
employee contributions (including earnings on each)
returned because of the section 415 limits.
If you are reporting a total distribution from a plan that
includes a distribution of DVECs, you may file a separate
4. Corrective distributions of excess deferrals (under
Form 1099-R to report the distribution of DVECs. If you
section 402(g)) and earnings.
do, report the distribution of DVECs in boxes 1 and 2a on
5. Corrective distributions of excess contributions
the separate Form 1099-R. For the direct rollover
under a qualified cash or deferred arrangement (under
(explained later) of funds that include DVECs, a separate
section 401(k)) and excess aggregate contributions
Form 1099-R is not required to report the direct rollover of
(under section 401(m)) and earnings.
the DVECs.
6. Loans treated as deemed distributions (under
section 72(p)). However, qualified plan loan offset
Direct Rollovers
amounts and plan loan offset amounts can be eligible
You must report a direct rollover of an eligible rollover
rollover distributions. See section 402(c)(3)(C) and
distribution. A direct rollover is the direct payment of the
Regulations section 1.402(c)-2, Q/A-9 and
Plan Loan
distribution from a qualified plan, a section 403(b) plan, or
Offsets, later.
a governmental section 457(b) plan to a traditional IRA,
7. Section 404(k) dividends.
Roth IRA, or other eligible retirement plan. For additional
rules regarding the treatment of direct rollovers from
8. Cost of current life insurance protection.
designated Roth accounts, see
Designated Roth
9. Distributions to a payee other than the employee,
accounts, later. A direct rollover may be made for the
the employee's surviving spouse, a spouse or former
employee, for the employee's surviving spouse, for the
spouse who is an alternate payee under a QDRO, or a
spouse or former spouse who is an alternate payee under
nonspouse designated beneficiary.
a qualified domestic relations order (QDRO) or for a
10. Any hardship distribution.
nonspouse designated beneficiary, in which case the
11. A permissible withdrawal under section 414(w).
direct rollover can only be made to an inherited IRA. If the
distribution is paid to the surviving spouse, the distribution
12. Prohibited allocations of securities in an S
is treated in the same manner as if the spouse were the
corporation that are treated as deemed distributions.
employee. See Part V of Notice 2007-7, 2007-5 I.R.B.
13. Distributions of premiums for accident or health
395, available at IRS.gov/irb/2007-05_IRB/ar11.html,
insurance under Regulations section 1.402(a)-1(e).
which has been modified by Notice 2009-82, 2009-41
Amounts paid under an annuity contract purchased for
I.R.B. 491, available at
IRS.gov/irb/2009-41_IRB/
and distributed to a participant under a qualified plan can
ar12.html, for guidance on direct rollovers by nonspouse
qualify as eligible rollover distributions. See Regulations
designated beneficiaries. Also see Notice 2008-30, Part II,
section 1.402(c)-2, Q/A-10.
2008-12 I.R.B. 638, available at
IRS.gov/irb/2008-12_IRB/
ar11.html, which has been amplified and clarified by
Automatic rollovers. Eligible rollover distributions also
Notice 2009-75, 2009-39 I.R.B. 436, available at
IRS.gov/
may include involuntary distributions that are more than
irb/2009-39_IRB/ar15.html, for questions and answers
$1,000 but not more than $5,000 and are made from a
covering rollover contributions to Roth IRAs.
qualified plan to an IRA on behalf of a plan participant.
Involuntary distributions are generally subject to the
automatic rollover provisions of section 401(a)(31)(B) and
-4-
Instructions for Forms 1099-R and 5498 (2019)
must be paid in a direct rollover to an IRA, unless the plan
balance in the designated Roth account is less than $200,
participant elects to have the rollover made to another
the plan is not required to offer a direct rollover election or
eligible retirement plan or to receive the distribution
to apply the automatic rollover provisions to such balance.
directly.
A distribution from a designated Roth account that is a
For information on the notification requirements, see
qualified distribution is tax free. A qualified distribution is a
Explanation to Recipients Before Eligible Rollover
payment that is made both after age 59
/
(or after death
1
2
Distributions (Section 402(f)
Notice), later. For additional
or disabililty) and after the 5-tax-year period that begins
information, also see Notice 2005-5, 2005-3 I.R.B. 337,
with the first day of the first tax year in which the employee
available at IRS.gov/irb/2005-03_IRB/ar10.html, modified
makes a contribution to the designated Roth account.
by Notice 2005-95, 2005-51 I.R.B. 1172, available at
Certain amounts, including corrective distributions, cannot
IRS.gov/irb/2005-51_IRB/ar12.html.
be qualified distributions. See Regulations section
1.402A-1.
Reporting a direct rollover. Report a direct rollover in
If any portion of a distribution from a designated Roth
box 1 and a 0 (zero) in box 2a, unless the rollover is a
account that is not includible in gross income is to be
direct rollover of a qualified rollover contribution other than
rolled over into a designated Roth account under another
from a designated Roth account. See
Qualified rollover
plan, the rollover must be accomplished by a direct
contributions as defined in section
408A(e), later. You do
rollover. Any portion not includible in gross income that is
not have to report capital gain in box 3 or NUA in box 6.
distributed to the employee, however, cannot be rolled
Enter Code G in box 7 unless the rollover is a direct
over to another designated Roth account, though it can be
rollover from a designated Roth account to a Roth IRA.
rolled over into a Roth IRA within the 60-day period
See
Designated Roth
accounts, later. If the direct rollover
described in section 402(c)(3). In the case of a direct
is made by a nonspouse designated beneficiary, also
rollover, the distributing plan is required to report to the
enter Code 4 in box 7.
recipient plan the amount of the investment (basis) in the
Prepare the form using the name and social security
contract and the first year of the 5-tax-year period, or that
number (SSN) of the person for whose benefit the funds
the distribution is a qualified distribution.
were rolled over (generally, the participant), not those of
For a direct rollover of a distribution from a designated
the trustee of the traditional IRA or other plan to which the
Roth account to a Roth IRA, enter the amount rolled over
funds were rolled.
in box 1 and 0 (zero) in box 2a. Use Code H in box 7. For
If part of the distribution is a direct rollover and part is
all other distributions from a designated Roth account, use
distributed to the recipient, prepare two Forms 1099-R.
Code B in box 7, unless Code E applies. If the direct
For guidance on allocation of after-tax amounts to
rollover is from one designated Roth account to another
rollovers, see Notice 2014-54, 2014-41 I.R.B. 670,
designated Roth account, also enter Code G in box 7.
available at IRS.gov/irb/2014-41_IRB/ar11.html.
For a direct rollover of a distribution from a section
For more information on eligible rollover distributions,
401(k) plan, a section 403(b) plan, or a governmental
including substantially equal periodic payments, RMDs,
section 457(b) plan to a designated Roth account in the
and plan loan offset amounts, see Regulations sections
same plan, enter the amount rolled over in box 1, the
1.402(c)-2 and 1.403(b)-7(b). See Rev. Rul. 2014-9,
taxable amount in box 2a, and any basis recovery amount
2014-17 I.R.B. 975, available at
IRS.gov/irb/2014-17_IRB/
in box 5. Use Code G in box 7.
ar05.html, for information on rollovers to qualified plans.
Qualified rollover contributions as defined in
Also, see Rev. Rul. 2002-62, which is on page 710 of
section 408A(e). A qualified rollover contribution as
Internal Revenue Bulletin 2002-42 at
IRS.gov/pub/irs-irbs/
defined in section 408A(e) is:
irb02-42.pdf, for guidance on substantially equal periodic
A rollover contribution to a Roth IRA from another IRA
payments.
that meets the requirements of section 408(d)(3), or
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
permissible timing restrictions apply, see Rev. Rul.
For reporting a rollover from an IRA other than a Roth
2004-12, 2004-7 I.R.B. 478, available at
IRS.gov/irb/
IRA to a Roth IRA, see Roth IRA conversions, earlier and
2004-07_IRB/ar08.html, modified by Notice 2013-74,
later.
2013-52 I.R.B. 819, available at
IRS.gov/irb/2013-52_IRB/
For a direct rollover of an eligible rollover distribution to
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
account and the participant's other accounts under the
For reporting instructions for a direct rollover from a
plan as accounts held under two separate plans for
designated Roth account, see
Designated Roth
accounts,
purposes of applying the automatic rollover rules of
earlier.
section 401(a)(31)(B) and Q/A-9 through Q/A-11 of
Regulations section 1.401(a)(31)-1. Thus, if a participant's
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Instructions for Forms 1099-R and 5498 (2019)