Instructions for Forms 1099-R and 5498

Form 1099-R reports distributions from retirement plans and other accounts, while Form 5498 reports contributions made to IRAs and similar retirement plans. Both are crucial for accurate tax filing in 2024.

What information do they contain?

Form 1099-R:

  • Gross amount of the distribution
  • Taxable amount
  • Distribution codes indicating type of distribution (e.g., rollover, penalty-free withdrawal)

Form 5498:

  • Total contributions made to the account
  • Contribution type differentiating between traditional, Roth, rollover, or employer contributions

Important updates for 2024:

A. Automatic Rollover Increase: The minimum amount automatically rolled over to another qualified plan has increased from $5,000 to $7,000.

B. Corrective Distributions: Certain corrective distributions (e.g., removing excess contributions) are now exempt from the 10% early withdrawal penalty.

C. Designated Roth Contributions: New codes are available to report designated Roth nonelective and matching contributions made to employer plans.

D. Disaster Tax Relief: Distributions made in qualified disaster areas may be eligible for tax relief.

E. Required Minimum Distribution (RMD) Age Increase: The age at which RMDs must begin has increased from 72 to 73.

F. Penalty-Free Withdrawals for Abuse Victims: Qualified individuals experiencing domestic abuse may be eligible for penalty-free withdrawals from IRAs.