1099-R Instructions For Recipient - 2016 Page 2

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R - Recharacterized IRA contribution made for 2015
Box 5. Generally, this shows the employee’s investment in
and recharacterized in 2016.
the contract (after-tax contributions), if any, recovered tax
S - Early distribution from a SIMPLE IRA in first 2
free this year; the portion that is your basis in a designated
years, no known exception (under age 59½).
Roth account; the part of premiums paid on commercial
T - Roth IRA distribution, exception applies.
annuities or insurance contracts recovered tax free; or the
U - Dividend distribution from ESOP under sec. 404(k).
Note. This distribution is not eligible for rollover.
nontaxable part of a charitable gift annuity. This box does
not show any IRA contributions. If the amount shown is your
W - Charges or payments for purchasing qualified long-
basis in a designated Roth account, the year you first made
term care insurance contracts under combined
contributions to that account may be entered in the box 11.
arrangements.
Box 6. If you received a lump-sum distribution from a
If the IRA/SEP/SIMPLE box is checked, you have
qualified plan that includes securities of the employer’s
received a traditional IRA, SEP, or SIMPLE distribution.
company, the net unrealized appreciation (NUA) (any
increase in value of such securities while in the trust) is
Box 8. If you received an annuity contract as part of a
taxed only when you sell the securities unless you choose to
distribution, the value of the contract is shown. It is not
include it in your gross income this year. See Pub. 575 and
taxable when you receive it and should not be included in
the Form 4972. If you roll over the distribution to a Roth IRA,
boxes 1 and 2a. When you receive periodic payments from
see the instruction for Box 2a. If the distribution was a direct
the annuity contract, they are taxable at that time. If the
rollover, the NUA is included in Box 2a. If you did not
distribution is made to more than one person, the
receive a lump-sum distribution, the amount shown is the
percentage of the annuity contract distributed to you is also
NUA attributable to employee contributions, which is not
shown. You will need this information if you use the 10-year
taxed until you sell the securities.
tax option (Form 4972). If charges were made for qualified
long-term care insurance contracts under combined
Box 7. The following codes identify the distribution you
arrangements, the amount of the reduction in the investment
received. For more information on these distributions, see
(but not below zero) in the annuity or life insurance contract
the instructions for your tax return. Also, certain distributions
is reported here.
may be subject to an additional 10% tax. See instructions
for Form 5329.
Box 9a. If a total distribution was made to more than one
person, the percentage you received is shown.
1 - Early distribution, no known exception (in most
cases, under age 59½).
Box 9b. For a life annuity from a qualified plan or from a
2 - Early distribution, exception applies (under age
section 403(b) plan (with after-tax contributions), an amount
59½).
may be shown for the employee’s total investment in the
3 - Disability.
contract. It is used to compute the taxable part of the
4 - Death.
distribution. See Pub. 575.
5 - Prohibited transaction.
6 - Section 1035 exchange (a tax-free exchange of life
Box 10. If an amount is reported in this box, see the
insurance, annuity, qualified long-term care
instructions for Forms 5329 and Pub. 575.
insurance, or endowment contracts).
st
7 - Normal distribution.
Box 11. The 1
year you made a contribution to the
8 - Excess contributions plus earnings/excess deferrals
designated Roth account reported on this form is shown in
(and/or earnings) taxable in 2016.
this box.
9 - Cost of current life insurance protection.
A - May be eligible for 10-year tax option (see Form
Boxes 12-17. If state or local income tax was withheld from
4972).
the distribution, boxes 14 and 17 may show the part of the
B - Designated Roth account distribution.
distribution subject to state and/or local tax.
Note. If Code B is in box 7 and an amount is
reported in box 10, see instructions for Form 5329.
Future developments. For the latest information about
D - Annuity payments from nonqualified annuities that
developments related to Form 1099-R and its instructions,
may be subject to tax under section 1411.
such as legislation enacted after they were published, go to
E - Distributions under Employee Plans Compliance
.
Resolution System (EPCRS).
F - Charitable gift annuity.
Additional information. You may want to see:
G - Direct rollover of a distribution to a qualified plan, a
W-4P, Withholding Certificate for Pension or Annuity Payments
section 403(b) plan, a governmental section 457 (b)
Form 4972, Tax on Lump-Sum Distributions
Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-
plan, or an IRA.
Favored Accounts
H - Direct rollover of a designated Roth account
Form 8606, Nondeductible IRAs
distribution to a Roth IRA.
Pub. 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
Pub. 571, Tax-Sheltered Annuity Plans (403(b) Plans)
J - Early distribution from a Roth IRA, no known
Pub. 575, Pension and Annuity Income
exception (in most cases, under age 59½).
Pub. 590-A and 590-B, Individual Retirement Arrangements (IRAs)
K - Distribution of IRA assets not having a readily
Pub. 721, Tax Guide to U.S. Civil Service Retirement Benefits
Pub. 939, General Rule for Pensions and Annuities
available FMV.
Pub. 969, Health Savings Accounts and Other Tax-Favored Health Plans
L - Loans treated as distributions.
N - Recharacterized IRA contribution made for 2016
and recharacterized in 2016.
P - Excess contributions plus earnings/excess deferrals
(and/or earnings) taxable in 2015.
Q - Qualified distribution from a Roth IRA.

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