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 6

ADVERTISEMENT

Notice 2009-68, 2009-39 I.R.B. 423, available at
that is in part taxable, file a separate Form 1099-R to
, modified by
report the taxable amount. See Section 1035 exchange,
Notice 2014-74, 2014-50 I.R.B. 937, available at
earlier.
, contains two
SIMPLE IRAs. Do not report a trustee-to-trustee transfer
safe harbor explanations that may be provided to
from one SIMPLE IRA to another SIMPLE IRA. However,
recipients of eligible rollover distributions from an
you must report as a taxable distribution in boxes 1 and 2a
employer plan in order to satisfy section 402(f).
a trustee-to-trustee transfer from a SIMPLE IRA to an IRA
Involuntary distributions. For involuntary distributions
that is not a SIMPLE IRA during the 2-year period
paid to an IRA in a direct rollover (automatic rollover), you
beginning on the day contributions are first deposited in
may satisfy the notification requirements of section 401(a)
the individual's SIMPLE IRA by the employer. Use Code S
(31)(B)(i) either separately or as a part of the section
in box 7 if appropriate.
402(f) notice. The notification must be in writing and may
Transfer of an IRA to spouse. If you transfer or
be sent using electronic media in accordance with Q/A-5
re-designate an interest from one spouse's IRA to an IRA
of Regulations section 1.402(f)-1. Also see Notice 2005-5,
for the other spouse under a divorce or separation
Q/A-15.
instrument, the transfer or re-designation as provided
under section 408(d)(6) is tax free. Do not report such a
Transfers
transfer on Form 1099-R.
Generally, do not report a transfer between trustees or
issuers that involves no payment or distribution of funds to
Corrective Distributions
the participant, including a trustee-to-trustee transfer from
You must report on Form 1099-R corrective distributions
one IRA to another IRA, valid transfers from one section
of excess deferrals, excess contributions and excess
403(b) plan in accordance with paragraphs 1 through 3 of
aggregate contributions under section 401(a) plans,
Regulations section 1.403(b)-10(b), or for the purchase of
section 401(k) cash or deferred arrangements, section
permissive service credit under section 403(b)(13) or
403(a) annuity plans, section 403(b) salary reduction
section 457(e)(17) in accordance with paragraph 4 of
agreements, and salary reduction simplified employee
Regulations section 1.403(b)-10(b) and Regulations
pensions (SARSEPs) under section 408(k)(6). Excess
section 1.457-10(b)(8). However, you must report:
contributions that are recharacterized under a section
Recharacterized IRA contributions;
401(k) plan are treated as distributed. Corrective
Roth IRA conversions;
distributions must include earnings through the end of the
Direct rollovers from qualified plans, section 403(b)
year in which the excess arose. These distributions are
plans, or governmental section 457(b) plans, including
reportable on Form 1099-R and are generally taxable in
any direct rollovers from such plans that are IRRs or are
the year of the distribution (except for excess deferrals
qualified rollover contributions described in section
under section 402(g)). Enter Code 8 or P in box 7 (with
408A(e); and
Code B, if applicable) to designate the distribution and the
Direct payments from IRAs to accepting employer
year it is taxable.
plans.
Use a separate Form 1099-R to report a corrective
IRA recharacterizations. You must report each
distribution from a designated Roth account.
recharacterization of an IRA contribution. If a participant
makes a contribution to an IRA (first IRA) for a year, the
The total amount of the elective deferral is
participant may choose to recharacterize the contribution
reported in box 12 of Form W-2. See the
TIP
by transferring, in a trustee-to-trustee transfer, any part of
Instructions for Forms W-2 and W-3 for more
the contribution (plus earnings) to another IRA (second
information.
IRA). The contribution is treated as made to the second
IRA (recharacterization). A recharacterization may be
For more information about reporting corrective
made with the same trustee or with another trustee. The
distributions, see: the Guide to Distribution Codes, later;
trustee of the first IRA must report the recharacterization
Notice 89-32, 1989-1 C.B. 671; Notice 88-33, 1988-1 C.B.
as a distribution on Form 1099-R and the contribution to
513; Notice 87-77, 1987-2 C.B. 385; and the Regulations
the first IRA and its character on Form 5498.
under sections 401(k), 401(m), 402(g), and 457.
Enter the fair market value (FMV) of the amount
Excess deferrals. Excess deferrals under section 402(g)
recharacterized in box 1, 0 (zero) in box 2a, and Code R
can occur in section 401(k) plans, section 403(b) plans, or
in box 7 if reporting a recharacterization of a prior-year
SARSEPs. If distributed by April 15 of the year following
(2015) contribution or Code N if reporting a
the year of deferral, the excess is taxable to the
recharacterization of a contribution in the same year
participant in the year of deferral (other than designated
(2016). It is not necessary to check the IRA/SEP/SIMPLE
Roth contributions), but the earnings are taxable in the
checkbox. For more information on how to report, see
year distributed. Except for a SARSEP, if the distribution
Notice 2000-30 on page 1266 of Internal Revenue Bulletin
occurs after April 15, the excess is taxable in the year of
2000-25 at
deferral and the year distributed. The earnings are taxable
in the year distributed. For a SARSEP, excess deferrals
Section 1035 exchange. You may have to report
not withdrawn by April 15 are considered regular IRA
exchanges of insurance contracts, including an exchange
under section 1035, under which any designated
contributions subject to the IRA contribution limits.
distribution may be made. For a section 1035 exchange
Corrective distributions of excess deferrals are not subject
to federal income tax withholding or social security and
-6-
Instructions for Forms 1099-R and 5498 (2016)

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial