Instructions For Forms 1099-R And 5498 - 2015 (Page 3 of 23) in pdf

within the 5-year period beginning with the first day of the

transfer or is with the same trustee. Enter Code 2 or 7 in

participant’s tax year in which the rollover was made, is

box 7 depending on the participant's age.

treated as includible in gross income for purposes of

A separate Form 1099-R must be used to report

applying section 72(t) to the distribution. The total amount

the total annual distribution from a designated

allocable to such an IRR is reported in box 10. See the

Roth account.

instructions for Box 10, later.

CAUTION

IRA Revocation or Account Closure

IRA Distributions

If a traditional or Roth IRA is revoked during its first 7 days

For deemed IRAs under section 408(q), use the

(under Regulations section 1.408-6(d)(4)(ii)) or is closed

rules that apply to traditional IRAs or Roth IRAs

TIP

at any time by the IRA trustee or custodian due to a failure

as applicable. Simplified employee pension

of the taxpayer to satisfy the Customer Identification

(SEP) IRAs and savings incentive match plan for

Program requirements described in section 326 of the

employees (SIMPLE) IRAs, however, may not be used as

USA PATRIOT Act, the distribution from the IRA must be

deemed IRAs.

reported. In addition, Form 5498, IRA Contribution

Information, must be filed to report any regular, rollover,

Deemed IRAs. For more information on deemed IRAs in

Roth IRA conversion, SEP IRA, or SIMPLE IRA

qualified employer plans, see Regulations section

contribution to an IRA that is subsequently revoked or

1.408(q)-1.

closed by the trustee or custodian.

IRAs other than Roth IRAs. Unless otherwise

If a regular contribution is made to a traditional or Roth

instructed, distributions from any IRA that is not a Roth

IRA that later is revoked or closed, and a distribution is

IRA must be reported in boxes 1 and 2a. Check the

made to the taxpayer, enter the gross distribution in

“Taxable amount not determined” box in box 2b. But see:

box 1. If no earnings are distributed, enter 0 (zero) in

Traditional, SEP, or SIMPLE IRA, later, for how to

box 2a and Code 8 in box 7 for a traditional IRA and Code

report the withdrawal of IRA contributions under section

J for a Roth IRA. If earnings are distributed, enter the

408(d)(4),

amount of earnings in box 2a. For a traditional IRA, enter

Transfers, later, for information on trustee-to-trustee

Codes 1 and 8, if applicable, in box 7; for a Roth IRA,

transfers, including recharacterizations,

enter Codes J and 8, if applicable. These earnings could

Reporting a corrective distribution from an IRA under

be subject to the 10% early distribution tax under section

section 408(d)(5), later,

72(t). If a rollover contribution is made to a traditional or

Reporting IRA revocations or account closures due to

Roth IRA that later is revoked or closed, and distribution is

Customer Identification Program failures, later, and

made to the taxpayer, enter in boxes 1 and 2a of Form

Reporting a transfer from a SIMPLE IRA to a

1099-R the gross distribution and the appropriate code in

non-SIMPLE IRA within the first 2 years of plan

box 7 (Code J for a Roth IRA). Follow this same

participation, later.

procedure for a transfer from a traditional or Roth IRA to

The direct rollover provisions beginning later do not apply

another IRA of the same type that later is revoked or

to distributions from any IRA. However, taxable

closed. The distribution could be subject to the 10% early

distributions from traditional IRAs and SEP IRAs may be

distribution tax under section 72(t).

rolled over into an eligible retirement plan. See section

If an IRA conversion contribution or a rollover from a

408(d)(3). SIMPLE IRAs may also be rolled over into an

qualified plan is made to a Roth IRA that later is revoked

eligible retirement plan, but only after the 2-year period

or closed, and a distribution is made to the taxpayer, enter

described in section 72(t)(6).

the gross distribution in box 1 of Form 1099-R. If no

An IRA includes all investments under one IRA plan or

earnings are distributed, enter 0 (zero) in box 2a and

account. File only one Form 1099-R for distributions from

Code J in box 7. If earnings are distributed, enter the

all investments under one plan that are paid in 1 year to

amount of the earnings in box 2a and Code J in box 7.

one recipient, unless you must enter different codes in

These earnings could be subject to the 10% early

box 7. You do not have to file a separate Form 1099-R for

distribution tax under section 72(t).

each distribution under the plan.

If an employer SEP IRA or SIMPLE IRA plan

Roth IRAs. For distributions from a Roth IRA, report the

contribution is made and the SEP IRA or SIMPLE IRA is

gross distribution in box 1 but generally leave box 2a

revoked by the employee or is closed by the trustee or

blank. Check the “Taxable amount not determined” box in

custodian, report the distribution as fully taxable.

box 2b. Enter Code J, Q, or T as appropriate in box 7. Do

not use any other codes with Code Q or Code T. You may

For more information on IRAs that have been revoked,

enter Code 8 or P with Code J. For the withdrawal of

see Rev. Proc. 91-70, 1991-2 C.B. 899.

excess contributions, see Roth IRA, later. It is not

Deductible Voluntary Employee Contributions

necessary to mark the IRA/SEP/SIMPLE checkbox.

(DVECs)

Roth IRA conversions. You must report a traditional,

If you are reporting a total distribution from a plan that

SEP, or SIMPLE IRA distribution that you know is

includes a distribution of DVECs, you may file a separate

converted this year to a Roth IRA in boxes 1 and 2a

Form 1099-R to report the distribution of DVECs. If you

(checking box 2b “Taxable amount not determined”

do, report the distribution of DVECs in boxes 1 and 2a on

unless otherwise directed elsewhere in these

the separate Form 1099-R. For the direct rollover

instructions), even if the conversion is a trustee-to-trustee

(explained later) of funds that include DVECs, a separate

-3-

Instructions for Forms 1099-R and 5498 (2015)

Instructions For Forms 1099-R And 5498 - 2015 Page 3

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