Instructions For Form 1099-Q - 2013 Page 2
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1
2You can find Notice 2001-81 on page 617 of Internal
If you do not have records showing that a gross
Revenue Bulletin 2001-52 at
distribution from a Coverdell ESA made in 2013 was
TIP
irb01-52.pdf.
a trustee-to-trustee transfer, leave box 4 blank.
Enter the earnings in box 2. If there is a loss and this is not
Box 5. Checkbox
the final year for distributions from the account or there are
no earnings, enter zero in box 2. Enter a loss in box 2 only if
Check the “Private” box if the distribution is from a QTP
this is the final year for distributions from the account.
established by one or more private eligible educational
Earnings are not subject to backup withholding.
institutions or check the “State” box if the distribution is from
a QTP established by a state. Otherwise, check the
If you are reporting a distribution from a Coverdell ESA
“Coverdell ESA” box.
that includes a returned contribution plus earnings, you
should file two Forms 1099-Q, one to report the returned
Box 6. Designated Beneficiary Checkbox
contribution plus earnings, the other to report the distribution
Check the box if the recipient is not the designated
of the other part of the account.
beneficiary under a qualified tuition program or a Coverdell
You should file a separate Form 1099-Q for any
ESA (see section 529(e)(1)).
trustee-to-trustee transfer.
Distribution Codes
For Coverdell ESAs, if you are not reporting earnings, see
the Caution on page 1.
For 2013, you may, but are not required to, include one of the
following distribution codes in the blank box below boxes 5
For Coverdell ESAs, if you are reporting earnings on
and 6. You may abbreviate as needed. For example, for
a distribution of excess contributions, use the
TIP
distribution code 1, you may enter “distr. code 1.”
method under Regulations section 1.408-11 for
calculating the net income attributable to IRA contributions
that are distributed as a returned contribution.
Distribution Code
Use this code for...
If the amount in box 2 includes earnings on excess
1–Distributions
Distributions (including transfers) to
contributions, enter distribution code 2 or 3 (as applicable) in
the recipient and any direct
the box below boxes 5 and 6 (below the shading). See
payments to a qualified educational
Notice 2003-53 for more information.
facility. However, use code 2 or 3
for withdrawals of excess
Box 3. Basis
contributions.
For QTPs and Coverdell ESAs, if you can determine basis,
2–Excess contributions plus
Withdrawals of excess Coverdell
enter in box 3 the basis included in the gross distribution
earnings taxable in 2013
ESA contributions and earnings
reported in box 1. The amount in box 3 must equal box 1
unless code 3 applies.
minus box 2.
3–Excess contributions plus
Withdrawals of excess
earnings taxable in 2012
contributions from a Coverdell ESA.
For determining basis of a Coverdell ESA, you may
Advise payees, at the time the
rely on Notice 2001-81.
TIP
distribution is made, that the
earnings are taxable in the year in
which the excess contributions
Box 4. Trustee-to-Trustee Transfer Checkbox
were made.
Check this box if the distribution was made directly
4–Disability
Distributions you made after the
(trustee-to-trustee transfer) from one QTP to another. For a
recipient was disabled (see section
Coverdell ESA, check this box if the distribution was made
72(m)(7)).
directly to another Coverdell ESA or to a QTP.
5–Death
Payments to a decedent's
In a trustee-to-trustee transfer between qualified
beneficiary, including an estate.
education programs, the distributing program must provide
6–Prohibited transaction
Prohibited transactions. See
you with a statement reporting the earnings portion of the
sections 408(e)(2) and 408(e)(4) for
distribution within 30 days of the distribution or by January
similar rules that apply to a
10th, whichever is earlier. You must properly account for this
Coverdell ESA.
in computing the earnings or (loss) reported in box 2 and the
basis reported in box 3.
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Instructions for Form 1099-Q (2013)
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