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 19
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24rollovers of eligible rollover distributions, see Direct
(under Regulations section 1.408-6(d)(4)(ii)) or closed at
Rollovers, earlier.
any time by the IRA trustee pursuant to its resignation or
such other event mandating the closure of the account,
If a rollover or trustee-to-trustee transfer is made from a
Form 5498 must be filed to report any regular, rollover,
savings incentive match plan for employees (SIMPLE)
IRA conversion, SEP IRA, or SIMPLE IRA contributions to
IRA to an IRA that is not a SIMPLE IRA and the trustee
the IRA. For information about reporting a distribution from
has adequately substantiated information that the
a revoked or closed IRA, see IRA Revocation or Account
participant has not satisfied the 2-year period specified in
Closure, earlier.
section 72(t)(6), report the amount as a regular
contribution in box 1 even if the amount exceeds $5,500
Total distribution, no contributions. Generally, if a
($6,500 for participants 50 or older).
total distribution was made from an account during the
Transfers. Do not report on Form 5498 a direct
year and no contributions, including rollovers,
trustee-to-trustee transfer from (a) a traditional IRA to
recharacterizations, or Roth IRA conversion amounts,
another traditional IRA or to a simplified employee
were made for that year, you need not file Form 5498 nor
pension (SEP) IRA, (b) a SIMPLE IRA to another SIMPLE
furnish the annual statement to reflect that the FMV on
IRA, (c) a SEP IRA to another SEP IRA or to a traditional
December 31 was zero.
IRA, or (d) a Roth IRA to another Roth IRA. For reporting
Required minimum distributions (RMDs). An IRA
purposes, contributions and rollovers do not include these
(other than a Roth IRA) owner/participant must begin
transfers.
taking distributions for each calendar year beginning with
Recharacterizations. You must report each
the calendar year in which the participant attains age 70
.
1
2
recharacterization of an IRA contribution. If a participant
The distribution for the 70
year must be made no later
1
2
makes a contribution to an IRA (first IRA) for a year, the
than April 1 of the following calendar year; RMDs for any
participant may choose to recharacterize the contribution
other year must be made no later than December 31 of
by transferring, in a trustee-to-trustee transfer, any part of
the year. See Regulations section 1.401(a)(9)-6 for RMDs
the contribution (plus earnings) to another IRA (second
from annuity contracts.
IRA). The contribution is treated as made to the second
For each IRA you held as of December 31 of the prior
IRA (recharacterization). A recharacterization may be
year, if an RMD is required for the year, you must provide
made with the same trustee or with another trustee. The
a statement to the IRA participant by January 31
trustee of the first IRA must report the amount contributed
regarding the RMD using one of two alternative methods
before the recharacterization as a contribution on Form
described below. You are not required to use the same
5498 and the recharacterization as a distribution on Form
method for all IRA participants; you can use Alternative
1099-R. The trustee of the second IRA must report the
one for some IRA participants and Alternative two for the
amount received (FMV) in box 4 on Form 5498 and check
rest. Under both methods, the statement must inform the
the type of IRA in box 7.
participant that you are reporting to the IRS that an RMD
All recharacterized contributions received by an IRA in
is required for the year. The statement can be provided in
the same year must be totaled and reported on one Form
conjunction with the statement of the FMV.
5498 in box 4. You may report the FMV of the account on
If the IRA participant is deceased, and the surviving
the same Form 5498 you use to report a
spouse is the sole beneficiary, special rules apply for
recharacterization of an IRA contribution and any other
RMD reporting. If the surviving spouse elects to treat the
contributions made to the IRA for the year.
IRA as the spouse's own, then report with the surviving
Catch-up contributions. Participants who are age 50 or
spouse as the owner. However, if the surviving spouse
older by the end of the year may be eligible to make
does not elect to treat the IRA as the spouse's own, then
catch-up IRA contributions or catch-up elective deferral
you must continue to treat the surviving spouse as the
contributions. The annual IRA regular contribution limit of
beneficiary. Until further guidance is issued, no reporting
$5,500 is increased to $6,500 for participants age 50 or
is required for IRAs of deceased participants (except
older. Catch-up elective deferral contributions reported on
where the surviving spouse elects to treat the IRA as the
Form 5498 may be made under a salary reduction SEP
spouse's own as described above).
(SARSEP) or under a SIMPLE IRA plan. For 2016, up to
Alternative one. Under this method, include in the
$5,500 in catch-up elective deferral contributions may be
statement the amount of the RMD with respect to the IRA
made under a SARSEP, and up to $2,500 to a SIMPLE
for the calendar year and the date by which the
IRA plan. For more information on catch-up elective
distribution must be made. The amount may be calculated
deferral contributions, see Regulations section 1.414(v)-1.
assuming the sole beneficiary of the IRA is not a spouse
Include any catch-up amounts when reporting
more than 10 years younger than the participant. Use the
contributions for the year in box 1, 8, 9, or 10, or for a prior
value of the account as of December 31 of the prior year
year in box 13a.
to compute the amount. See boxes 11, 12a, and 12b,
later, for how to report.
Roth IRA conversions. You must report the receipt of a
Alternative two. Under this method, the statement
conversion from an IRA to a Roth IRA even if the
informs the participant that a minimum distribution with
conversion is with the same trustee. Report the total
respect to the IRA is required for the calendar year and
amount converted from a traditional IRA, SEP IRA, or
the date by which such amount must be distributed. You
SIMPLE IRA to a Roth IRA in box 3.
must include an offer to furnish the participant with a
IRA revocation or account closure. If a traditional IRA,
calculation of the amount of the RMD if requested by the
Roth IRA, or SIMPLE IRA is revoked during its first 7 days
participant.
-19-
Instructions for Forms 1099-R and 5498 (2016)
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