Instructions For Forms 1099-R And 5498 - 2015 (Page 5 of 23) in pdf

2002-42 at

for

A rollover contribution to a Roth IRA from another IRA

guidance on substantially equal periodic payments.

that meets the requirements of section 408(d)(3) or

A rollover contribution to a Roth IRA from an eligible

For information on distributions of amounts

retirement plan (other than an IRA) that meets the

attributable to rollover contributions separately

TIP

requirements of section 408A(e)(1)(B).

accounted for by an eligible retirement plan and if

For reporting a rollover from an IRA other than a Roth

permissible timing restrictions apply, see Rev. Rul.

IRA to a Roth IRA, see Roth IRA conversions, earlier and

2004-12, 2004-7 I.R.B. 478, available at

later.

2004-07_IRB/ar08.html.

For a direct rollover of an eligible rollover distribution to

Designated Roth accounts. A direct rollover from a

a Roth IRA (other than from a designated Roth account),

designated Roth account may only be made to another

report the total amount rolled over in box 1, the taxable

designated Roth account or to a Roth IRA. A distribution

amount in box 2a, and any basis recovery amount in

from a Roth IRA, however, cannot be rolled over into a

box 5. (See the instructions for Box 5, later.) Use Code G

designated Roth account. In addition, a plan is permitted

in box 7. If the direct rollover is made on behalf of a

to treat the balance of the participant's designated Roth

nonspouse designated beneficiary, also enter Code 4 in

account and the participant's other accounts under the

box 7.

plan as accounts held under two separate plans for

For reporting instructions for a direct rollover from a

purposes of applying the automatic rollover rules of

designated Roth account, see Designated Roth accounts,

section 401(a)(31)(B) and Q/A-9 through Q/A-11 of

earlier.

Regulations section 1.401(a)(31)-1. Thus, if a participant's

balance in the designated Roth account is less than $200,

Explanation to Recipients Before Eligible

the plan is not required to offer a direct rollover election or

Rollover Distributions (Section 402(f) Notice)

to apply the automatic rollover provisions to such balance.

For qualified plans, section 403(b) plans, and

A distribution from a designated Roth account that is a

governmental section 457(b) plans, the plan administrator

qualified distribution is tax-free. A qualified distribution is a

must provide to each recipient of an eligible rollover

payment that is made both after age 59

(or after death or

distribution an explanation using either a written paper

disabililty) and after the 5-taxable-year period that begins

document or an electronic medium (section 402(f) notice).

with the first day of the first taxable year in which the

The explanation must be provided no more than 180 days

employee makes a contribution to the designated Roth

and no fewer than 30 days before making an eligible

account. Certain amounts, including corrective

rollover distribution or before the annuity starting date.

distributions, cannot be qualified distributions. See

However, if the recipient who has received the section

Regulations section 1.402A-1.

402(f) notice affirmatively elects a distribution, you will not

If any portion of a distribution from a designated Roth

fail to satisfy the timing requirements merely because you

account that is not includible in gross income is to be

make the distribution fewer than 30 days after you

rolled over into a designated Roth account under another

provided the notice as long as you meet the requirements

plan, the rollover must be accomplished by a direct

of Regulations section 1.402(f)-1, Q/A-2. The electronic

rollover. Any portion not includible in gross income that is

section 402(f) notice must meet the requirements for

distributed to the employee, however, cannot be rolled

using electronic media in Regulations section 1.401(a)-21.

over to another designated Roth account, though it can be

rolled over into a Roth IRA within the 60-day period

The notice must explain the rollover rules, the special

described in section 402(c)(3). In the case of a direct

tax treatment for certain lump-sum distributions, the direct

rollover, the distributing plan is required to report to the

rollover option (and any default procedures), the

recipient plan the amount of the investment (basis) in the

mandatory 20% withholding rules, and an explanation of

contract and the first year of the 5-taxable-year period, or

how distributions from the plan to which the rollover is

that the distribution is a qualified distribution.

made may have different restrictions and tax

consequences than the plan from which the rollover is

For a direct rollover of a distribution from a designated

made. The notice is permitted to be sent either as a

Roth account to a Roth IRA, enter the amount rolled over

written paper document or through an electronic medium;

in box 1 and 0 (zero) in box 2a. Use Code H in box 7. For

see Regulations section 1.402(f)-1, Q/A-5.

all other distributions from a designated Roth account, use

Code B in box 7, unless Code E applies. If the direct

For periodic payments that are eligible rollover

rollover is from one designated Roth account to another

distributions, you must provide the notice before the first

designated Roth account, also enter Code G in box 7.

payment and at least once a year as long as the payments

For a direct rollover of a distribution from a section

continue. For section 403(b) plans, the payer must

401(k) plan, a section 403(b) plan, or a governmental

provide an explanation of the direct rollover option within

section 457(b) plan to a designated Roth account in the

the time period described earlier or some other

same plan, enter the amount rolled over in box 1, the

reasonable period of time.

taxable amount in box 2a, and any basis recovery amount

Notice 2009-68, 2009-39 I.R.B. 423, available at

in box 5. Use Code G in box 7.

2009-39_IRB/ar14.html, contains two

Qualified rollover contributions as defined in

safe harbor explanations that may be provided to

section 408A(e). A qualified rollover contribution as

recipients of eligible rollover distributions from an

defined in section 408A(e) is:

employer plan in order to satisfy section 402(f). See also

Notice 2009-75, and, if the plan offers IRRs, Notice

-5-

Instructions for Forms 1099-R and 5498 (2015)

Instructions For Forms 1099-R And 5498 - 2015 Page 5

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