Instructions For Forms 1099-R And 5498 - 2015 (Page 10 of 23) in pdf

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 2015.

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, 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

Box 4, $60 ($300 x 20%) as the withholding on the

contracts; or

earnings portion of the distribution;

A nontaxable charge or payment, for the purchase of a

Box 5, $4,700 as the designated Roth contribution

qualified long-term care insurance contract, against the

basis (nontaxable amount);

cash value of an annuity contract or the cash surrender

Box 7, Code B; and

value of a life insurance contract.

The first year of the 5-taxable-year period in box 11.

Annuity starting date in 1998 or later. If you made

Using the same facts as in the example above, except

annuity payments from a qualified plan under section

that the distribution was a direct rollover to a Roth IRA, the

401(a), 403(a), or 403(b) and the annuity starting date is in

issuer would report on Form 1099-R:

1998 or later, you must use the simplified method under

Box 1, $5,000 as the gross distribution;

section 72(d)(1) to figure the taxable amount. Under this

Box 2a, 0 (zero) as the taxable amount;

method, the expected number of payments you use to

Box 4, no entry;

figure the taxable amount depends on whether the

Box 5, $4,700 as the designated Roth contribution

payments are based on the life of one or more than one

basis (nontaxable amount);

person. See Notice 98-2, 1998-1 C.B. 266, and Pub. 575,

Box 7, Code H; and

Pension and Annuity Income, to help you figure the

taxable amount to enter in box 2a.

The first year of the 5-taxable-year period in box 11.

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Instructions for Forms 1099-R and 5498 (2015)

Instructions For Forms 1099-R And 5498 - 2015 Page 10

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