1099-R Instructions For Recipient - 2016 printable pdf download

2016 1099-R Instructions for Recipient

Generally, distributions from pensions, annuities, profit-

sharing and retirement plans (including section 457 state

If a life insurance, annuity, qualified long-term care, or

and local government plans), IRAs, insurance contracts, etc.,

endowment contract was transferred tax free to another

are reported to recipients on Form 1099-R.

trustee or contract issuer, an amount will be shown in this

box and Code 6 will be shown in box 7. If a charge or

Qualified plans. If your annuity starting date is after 1997,

payment was made against the cash value of an annuity

you must use the simplified method to figure your taxable

contract or the cash surrender value of a life insurance

amount if your payer did not show the taxable amount in box

contract for the purchase of qualified long-term care

2a. See the Instructions for Form 1040, 1040A, or 1040NR.

insurance, an amount will be shown in this box and Code W

will be shown in box 7. You need not report these amounts

IRAs. For distributions from a traditional individual retirement

on your tax return.

arrangement (IRA), simplified employee pension (SEP), or

savings incentive match plan for employees (SIMPLE),

Box 2a. This part of the distribution is generally taxable. If

generally the payer is not required to compute the taxable

there is no entry in this box, the payer may not have all the

amount. See the Form 1040, 1040A, or 1040NR instructions

facts needed to figure the taxable amount. In that case, the

to determine the taxable amount. If you are at least age 70

first box in box 2b should be checked. You may want to get

½, you must take minimum distributions from your IRA (other

one of the free publications from the IRS to help you figure

than a Roth IRA). If you do not, you may be subject to a 50%

the taxable amount. For an IRA distribution, see IRAs and

excise tax on the amount that should have been distributed.

Roth IRAs on this page. For a direct rollover, other than

See Pub. 590-A and Pub. 509-B for more information on

from a qualified plan to a Roth IRA, zero should be shown,

IRAs.

and you must enter zero (-0-) on the “Taxable amount” line

of your tax return. If you roll over a distribution (other than a

Roth IRAs. For distributions from a Roth IRA, generally the

distribution from a designated Roth Account) from a qualified

payer is not required to compute the taxable amount. You

plan (including a governmental section 457(b) plan) or

must compute any taxable amount on Form 8606. An

section 403(b) plan to a Roth IRA, you must include on the

amount shown in box 2a may be taxable earnings on an

“Taxable amount” line of your tax return the amount shown

excess contribution.

in this box plus the amount in box 6, in any.

If this is a total distribution from a qualified plan and you

Loans treated as distributions. If you borrow money from

were born before January 2, 1936 (or you are the beneficiary

a qualified plan, section 403(b) plan, or governmental

of someone born before January 2, 1936), you may be

section 457(b) plan, you may have to treat the loan as a

eligible for the 10-year tax option. See the Form 4972

distribution and include all or part of the amount borrowed in

instructions for more information.

your income. There are exceptions to this rule. If your loan

is taxable, Code L will be shown in box 7. See Pub. 575.

If you are an eligible retired public safety officer who elected

to exclude from income distributions from your eligible plan

Recipient’s identification number. For your protection, this

used to pay certain insurance premiums, the amount shown

form may show only the last four digits of your social security

in box 2a has not been reduced by the exclusion amount.

number (SSN), individual taxpayer identification number

See the instructions for Form 1040, 1040A, or 1040NR for

(ITIN), or adoption taxpayer identification number (ATIN), or

more information.

employer identification number (EIN). However, the issuer

has reported your complete identification number to the IRS

Box 2b. If the first box is checked, the payer was unable to

and, where applicable, to state and/or local governments.

determine the taxable amount, and box 2a should be blank,

except for an IRA. It is your responsibility to determine the

Account number. May show an account or other unique

taxable amount. If the second box is checked, the

number the payer assigned to distinguish your account.

distribution was a total distribution that closed out your

account.

Box 1. Shows the total amount you received this year. The

amount may have been a direct rollover, a transfer or

Box 3. If you received a lump-sum distribution from a

conversion to a Roth IRA, a recharacterized IRA

qualified plan and were born before January 2, 1936 (or you

contribution; or you may have received it as periodic

are the beneficiary of someone born before January 2,

payments, as nonperiodic payments, or as a total

1936), you may be able to elect to treat this amount as a

distribution. Report the amount on Form 1040 or 1040A on

capital gain on Form 4972 (not on Schedule D (Form 1040)).

the line for “IRA distributions” or “Pensions and annuities” (or

See the Form 4972 instructions. For a charitable gift

the line for “Taxable amount”), and on Form 8606, as

annuity, report as a long-term capital gain as explained in

applicable. However, if this is a lump-sum distribution, see

the instructions for Form 8949.

Form 4972. If you have not reached minimum retirement

age, report your disability payments on the line for “Wages,

Box 4. Shows Federal income tax withheld. Include this

salaries, tips, etc.” on your tax return. Also report on that

amount on your income tax return as tax withheld, and if

line permissible withdrawals from eligible automatic

box 4 shows an amount (other than zero), attach Copy B

contribution arrangements and corrective distributions of

to your return. Generally, if you will receive payments next

excess deferrals, excess contributions, or excess aggregate

year that are not eligible rollover distributions, you can

contributions except if the distribution is of designated Roth

change your withholding or elect not to have income tax

contributions or your after-tax contributions or if you are self-

withheld by giving the payer Form W-4P.

employed.

1099-R Instructions For Recipient - 2016

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