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 5
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24For more information on eligible rollover distributions,
For a direct rollover of a distribution from a section
including substantially equal periodic payments, RMDs,
401(k) plan, a section 403(b) plan, or a governmental
and plan loan offset amounts, see Regulations sections
section 457(b) plan to a designated Roth account in the
1.402(c)-2 and 1.403(b)-7(b). See Rev. Rul. 2014-9,
same plan, enter the amount rolled over in box 1, the
2014-17 I.R.B. 975 available at
taxable amount in box 2a, and any basis recovery amount
2014-17_IRB/ar05.html, for information on rollovers to
in box 5. Use Code G in box 7.
qualified plans. Also, see Rev. Rul. 2002-62, which is on
Qualified rollover contributions as defined in
page 710 of Internal Revenue Bulletin 2002-42 at
section 408A(e). A qualified rollover contribution as
for guidance on
defined in section 408A(e) is:
substantially equal periodic payments.
A rollover contribution to a Roth IRA from another IRA
that meets the requirements of section 408(d)(3), or
For information on distributions of amounts
A rollover contribution to a Roth IRA from an eligible
attributable to rollover contributions separately
TIP
retirement plan (other than an IRA) that meets the
accounted for by an eligible retirement plan and if
requirements of section 408A(e)(1)(B).
permissible timing restrictions apply, see Rev. Rul.
For reporting a rollover from an IRA other than a Roth
2004-12, 2004-7 I.R.B. 478, available at
IRA to a Roth IRA, see Roth IRA conversions, earlier and
2004-07_IRB/ar08.html, modified by Notice 2013-74,
later.
2013-52 I.R.B. 819, available at
2013-52_IRB/ar11.html.
For a direct rollover of an eligible rollover distribution to
a Roth IRA (other than from a designated Roth account),
Designated Roth accounts. A direct rollover from a
report the total amount rolled over in box 1, the taxable
designated Roth account may only be made to another
amount in box 2a, and any basis recovery amount in
designated Roth account or to a Roth IRA. A distribution
box 5. (See the instructions for Box 5, later.) Use Code G
from a Roth IRA, however, cannot be rolled over into a
in box 7. If the direct rollover is made on behalf of a
designated Roth account. In addition, a plan is permitted
nonspouse designated beneficiary, also enter Code 4 in
to treat the balance of the participant's designated Roth
box 7.
account and the participant's other accounts under the
For reporting instructions for a direct rollover from a
plan as accounts held under two separate plans for
designated Roth account, see Designated Roth accounts,
purposes of applying the automatic rollover rules of
earlier.
section 401(a)(31)(B) and Q/A-9 through Q/A-11 of
Regulations section 1.401(a)(31)-1. Thus, if a participant's
Explanation to Recipients Before Eligible
balance in the designated Roth account is less than $200,
Rollover Distributions (Section 402(f) Notice)
the plan is not required to offer a direct rollover election or
to apply the automatic rollover provisions to such balance.
For qualified plans, section 403(b) plans, and
governmental section 457(b) plans, the plan administrator
A distribution from a designated Roth account that is a
must provide to each recipient of an eligible rollover
qualified distribution is tax free. A qualified distribution is a
distribution an explanation using either a written paper
payment that is made both after age 59
(or after death or
1
2
document or an electronic medium (section 402(f) notice).
disabililty) and after the 5-taxable-year period that begins
The explanation must be provided no more than 180 days
with the first day of the first taxable year in which the
and no fewer than 30 days before making an eligible
employee makes a contribution to the designated Roth
rollover distribution or before the annuity starting date.
account. Certain amounts, including corrective
However, if the recipient who has received the section
distributions, cannot be qualified distributions. See
402(f) notice affirmatively elects a distribution, you will not
Regulations section 1.402A-1.
fail to satisfy the timing requirements merely because you
If any portion of a distribution from a designated Roth
make the distribution fewer than 30 days after you
account that is not includible in gross income is to be
provided the notice as long as you meet the requirements
rolled over into a designated Roth account under another
of Regulations section 1.402(f)-1, Q/A-2. The electronic
plan, the rollover must be accomplished by a direct
section 402(f) notice must meet the requirements for
rollover. Any portion not includible in gross income that is
using electronic media in Regulations section 1.401(a)-21.
distributed to the employee, however, cannot be rolled
The notice must explain the rollover rules, the special
over to another designated Roth account, though it can be
tax treatment for certain lump-sum distributions, the direct
rolled over into a Roth IRA within the 60-day period
rollover option (and any default procedures), the
described in section 402(c)(3). In the case of a direct
mandatory 20% withholding rules, and an explanation of
rollover, the distributing plan is required to report to the
how distributions from the plan to which the rollover is
recipient plan the amount of the investment (basis) in the
made may have different restrictions and tax
contract and the first year of the 5-taxable-year period, or
consequences than the plan from which the rollover is
that the distribution is a qualified distribution.
made.
For a direct rollover of a distribution from a designated
For periodic payments that are eligible rollover
Roth account to a Roth IRA, enter the amount rolled over
distributions, you must provide the notice before the first
in box 1 and 0 (zero) in box 2a. Use Code H in box 7. For
payment and at least once a year as long as the payments
all other distributions from a designated Roth account, use
continue. For section 403(b) plans, the payer must
Code B in box 7, unless Code E applies. If the direct
provide an explanation of the direct rollover option within
rollover is from one designated Roth account to another
designated Roth account, also enter Code G in box 7.
the time period described earlier or some other
reasonable period of time.
-5-
Instructions for Forms 1099-R and 5498 (2016)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Instructions For Forms 1099-r And 5498 - Distributions From Pensions, Annuities, Retirement Or Profit-sharing Plans, Iras, Insurance Contracts, Etc. And Ira Contribution Information - Irs - 2017
Financial
Instructions For Form 4852 - Substitute For Form W-2, Wage And Tax Statement, Or Form 1099-r, Distributions From Pensions, Annuities, Retirement Or Profit-sharing Plans, Iras, Insurance Contracts, Etc.
Financial
Form 4852 - Substitute For Form W-2, Wage And Tax Statement, Or Form 1099-r, Distributions From Pensions, Annuities, Retirement Or Profit-sharing Plans, Iras, Insurance Contracts, Etc.
Financial
Instructions For Form 1099-r - Distributions From Pensions, Annuities, Retirement Or Profit-sharing Plans, Iras, Insurance Contracts, Etc
Financial
Form 1099-r - Distributions From Pensions, Annuities, Retirement Or Profit-sharing Plans, Iras, Insurance Contracts, Etc. - 2016
Financial
Form 3525 - California Substitute For Form W-2, Wage And Tax Statement, Or Form 1099-r, Distributions From Pensions, Annuities, Retirement Or Profit-sharing Plans, Iras, Insurance Contracts, Etc.
Financial
Form 3525 - California Substitute For Form W-2, Wage And Tax Statement, Or Form 1099-r, Distributions From Pensions, Annuities, Retirement Or Profit-sharing Plans, Iras, Insurance Contracts, Etc.
Financial
Form 4852 - Substitute For Form W-2, Wage And Tax Statement, Or Form 1099-r - Distributions From Pensions, Annuities, Retirement Or Profit-sharing Plans, Iras, Insurance Contracts, Etc.
Financial
Related Categories
Parent category: Financial