1099-R Instructions For Recipient - 2016


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,
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
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.


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