FAQ About 1099-R
What is a 1099-R and who needs to file this form?
Form 1099-R is used to report distributions from retirement or profit-sharing plans, any IRA, insurance contracts, and IRA re-characterizations. A 1099-R must be filed by any individual or entity that has:
- Made a designated distribution or is treated as having made a distribution of $10 or more from profit-sharing or retirements plans, individual retirement arrangements (IRAs), annuities, pensions, insurance contracts, survivor income benefit plans, permanent and total disability payments under life insurance contracts, charitable gift annuities, etc. for an individual
- Made reportable disability payments from a retirement plan
Additionally, employers that made death benefit payments that were not made as part of a pension, profit-sharing, or retirement plan must file Form 1099-R.
What is the process for filing a 1099-R?
Complete the information on Form 1099-R following the detailed instructions provided by the Internal Revenue Service. Create and distribute the following copies:
- Copy A – submit to the Internal Revenue Service (on paper or via electronic filing)
- Copy B, 2 and C – submit to the recipient for his/her federal, state, city, or local (if applicable) income tax returns and personal records
- Copy 1 – submit to the state, city or local tax department, if applicable (on paper or via electronic filing)
- Copy D – retain for the payer’s records
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