Do I Have to File a 1099-R Form?

You will likely get a 1099-R form If you received a distribution from a retirement plan or a similar account like an annuity, pension, or insurance contract. The plan administrator is responsible for filing the 1099-R with the IRS and any required state or local governments. As the taxpayer you will also report the distribution on your income taxes.

What is a 1099-R form?

A 1099-R form is a tax document that reports distributions over $10 from the following accounts: 

• Independent Retirement Account (IRA) 
• Profit sharing or retirement plans 
• Annuities and pensions 
• Insurance contracts 
• Survivor income benefit plans
• Life insurance payouts for permanent and total disability
• Other similar accounts 

The form reports the total amount of the distribution, any federal income tax withheld, and any other taxes or penalties. You should receive a 1099-R form from the payer by January 31 of the following year.

Who needs to file a 1099-R form?

Generally, the plan administrator should file a 1099-R form, and you should claim the distribution amount on your income taxes, if the following apply: 

1. You received a distribution of $10 or more from a retirement plan or IRA, including a Roth IRA.
2. You rolled over a distribution from a retirement plan or IRA to another qualified retirement plan or IRA.
3. You made an early withdrawal from a retirement plan or IRA and owe additional taxes or penalties.
4. You inherited a retirement account and received a distribution.
5. You received a corrective distribution from a retirement plan or IRA due to excess contributions or other reasons.
6. You received a lump-sum distribution from a retirement plan or IRA.

In some cases, you might not receive a 1099-R form for a distribution. This includes: 

• Distributions that are not taxable. This usually includes a Roth IRA, workers’ compensation, and distributions from Veterans Affairs, among others. 
• If the distribution is less than $10. 
• Distributions from non-reportable accounts like a Simplified Employee Pension (SEP) plan. 

What is on a 1099-R form? 

A 1099-R form includes the following information about the distribution, as reported by the payer. Some of the boxes include: 

• The total, or gross, amount of the distribution you received 
• Taxable amount of the distribution 
• Capital gain
• Amount withheld by the payer from the distribution
• Distribution code that designates the type of distribution 
• Your investment, or the amount in the plan already taxed. If you were already taxed on an amount, it will likely not incur additional taxes. 

If you question any of the amounts, contact the plan administrator as soon as possible. 

How to file a 1099-R form 

If you received a distribution from a retirement account, the payer is required to file the form 1099-R with the IRS and other local governments and provide you a copy. If you didn’t get a form or believe that the information on the form is incorrect, you should contact the payer to request the form, or ask for a correction. 

You will report the information from the 1099-R on your income taxes. 

The Bottom Line 

If you received a distribution from a retirement account, you may need to report the 1099-R form with the IRS. It is important to ensure that the information on the form is accurate and that it is filed by the appropriate deadline to avoid any penalties or fees. If you are unsure whether you should receive or file a 1099-R form, you should consult with a tax professional.