Form 1099-R: Distributions From Pensions Annuities Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

A 1099-R, formally titled "Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.," is an IRS tax form used to report distributions you receive from various retirement accounts and insurance products. Essentially, it acts as a record of the money you've withdrawn from these accounts throughout the year.

Who Receives a 1099-R?

You will receive a 1099-R if you received a distribution of $10 or more from any of the following:

  • Profit-sharing or retirement plans
  • IRAs (traditional, Roth, SEP, SIMPLE)
  • Annuities
  • Pensions
  • Insurance contracts (including life insurance and disability insurance)
  • Survivor income benefit plans

How to Use Form 1099-R When Filing Taxes:

Report the Distribution: Use the information on Form 1099-R to report the distribution on your tax return. The specific line where you report it depends on the type of account and distribution.

Tax Implications: The tax treatment of your distribution varies depending on the type of account and whether the contribution was pre-tax or after-tax. Consult a tax professional for specific guidance.

Attach the Form: If there's federal income tax withheld (shown in Box 4), attach a copy of Form 1099-R to your tax return.

Important Tips When Dealing with Form 1099-R

Keep it Safe: Form 1099-R is crucial for accurate tax filing. Maintain a copy for your records alongside your tax return.

Reconcile with Account Statements: Double-check the amounts on your 1099-R with your account statements to ensure everything matches.