Instructions For Forms 1099-R And 5498 - Distributions From Pensions, Annuities, Retirement Or Profit-Sharing Plans, Iras, Insurance Contracts, Etc. And Ira Contribution Information - 2016 Page 10

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enter the gross distribution in box 1, the taxable portion of
A nontaxable charge or payment, for the purchase of a
the distribution in box 2a, the basis included in the
qualified long-term care insurance contract, against the
distributed amount in box 5, any amount allocable to an
cash value of an annuity contract or the cash surrender
IRR made within the previous 5 years (unless an
value of a life insurance contract.
exception to section 72(t) applies) in box 10, and the first
Annuity starting date in 1998 or later. If you made
year of the 5-taxable-year period for determining qualified
annuity payments from a qualified plan under section
distributions in box 11. Also, enter the applicable code(s)
401(a), 403(a), or 403(b) and the annuity starting date is in
in box 7.
1998 or later, you must use the simplified method under
Employer securities and other property. If you
section 72(d)(1) to figure the taxable amount. Under this
distribute employer securities or other property, include in
method, the expected number of payments you use to
box 1 the FMV of the securities or other property on the
figure the taxable amount depends on whether the
date of distribution. If there is a loss, see Losses, later.
payments are based on the life of one or more than one
person. See Notice 98-2, 1998-1 C.B. 266, and Pub. 575,
If you are distributing worthless property only, you are
Pension and Annuity Income, to help you figure the
not required to file Form 1099-R. However, you may file
taxable amount to enter in box 2a.
and enter 0 (zero) in boxes 1 and 2a and any after-tax
employee contributions or designated Roth contributions
Annuity starting date after November 18, 1996, and
in box 5.
before 1998. Under the simplified method for figuring the
taxable amount, the expected number of payments is
Charitable gift annuities. If cash or capital gain property
based only on the primary annuitant's age on the annuity
is donated in exchange for a charitable gift annuity, report
starting date. See Notice 98-2.
the total amount distributed during the year in box 1. See
Charitable gift annuities under Box 3, later.
Annuity starting date before November 19, 1996. If
you properly used the rules in effect before November 19,
FFIs reporting in a manner similar to section 6047(d).
1996, for annuities that started before that date, continue
If you are a participating FFI electing to report with respect
to report using those rules. No changes are necessary.
to a cash value insurance contract or annuity contract that
is a U.S. account held by a specified U.S. person in a
Corrective distributions. Enter in box 2a the amount of
manner similar to section 6047(d), include in box 1 any
excess deferrals, excess contributions, or excess
amount paid under the contract during the reporting
aggregate contributions (other than employee
period (that is, the calendar year or the year ending on the
contributions or designated Roth contributions). See
most recent contract anniversary date).
Corrective Distributions, earlier.
Do not report the account balance or value (as of
Cost of current life insurance protection. Include
the end of the reporting period) in box 1.
current life insurance protection costs (net premium costs)
!
Participating FFIs reporting in a manner similar to
that were reported in box 1. However, do not report these
CAUTION
section 6047(d) should check the Recent Developments
costs and a distribution on the same Form 1099-R. Use a
section for Form 1099-R at
before
separate Form 1099-R for each. For the cost of current life
filing for 2016.
insurance protection, enter Code 9 in box 7.
DVECs. Include DVEC distributions in this box. Also see
Box 2a. Taxable Amount
Deductible Voluntary Employee Contributions (DVECs),
earlier.
When determining the taxable amount to be
entered in box 2a, do not reduce the taxable
!
Designated Roth account. Generally, a distribution
amount by any portion of the $3,000 exclusion for
from a designated Roth account that is not a qualified
CAUTION
which the participant may be eligible as a payment of
distribution is taxable to the recipient under section 402 in
qualified health and long-term care insurance premiums
the case of a plan qualified under section 401(a), under
for retired public safety officers under section 402(l).
section 403(b)(1) in the case of a section 403(b) plan, and
under section 457(a)(1)(A) in the case of a governmental
Generally, you must enter the taxable amount in box 2a.
section 457(b) plan. For purposes of section 72,
However, if you are unable to reasonably obtain the data
designated Roth contributions are treated as employer
needed to compute the taxable amount, leave this box
contributions as described in section 72(f)(1) (that is, as
blank. Do not enter excludable or tax-deferred amounts
includible in the participant's gross income).
reportable in boxes 5, 6, and 8. Enter 0 (zero) in box 2a
Examples. Participant A received a nonqualified
for:
distribution of $5,000 from the participant's designated
A direct rollover (other than an IRR) from a qualified
Roth account. Immediately before the distribution, the
plan, a section 403(b) plan, or a governmental section
participant's account balance was $10,000, consisting of
457(b) plan to another such plan or to a traditional IRA;
$9,400 of designated Roth contributions and $600 of
A direct rollover from a designated Roth account to a
earnings. The taxable amount of the $5,000 distribution is
Roth IRA;
$300 ($600/$10,000 x $5,000). The nontaxable portion of
A traditional, SEP, or SIMPLE IRA directly transferred
the distribution is $4,700 ($9,400/$10,000 x $5,000). The
to an accepting employer plan;
issuer would report on Form 1099-R:
An IRA recharacterization;
Box 1, $5,000 as the gross distribution;
A nontaxable section 1035 exchange of life insurance,
Box 2a, $300 as the taxable amount;
annuity, endowment or long-term care insurance
contracts; or
-10-
Instructions for Forms 1099-R and 5498 (2016)

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