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 Page 6
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23402(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
Corrective Distributions
issuers that involves no payment or distribution of funds to
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
The total amount of the elective deferral is
makes a contribution to an IRA (first IRA) for a year, the
reported in box 12 of Form W-2. See the
participant may choose to recharacterize the contribution
TIP
Instructions for Forms W-2 and W-3 for more
by transferring, in a trustee-to-trustee transfer, any part of
information.
the contribution (plus earnings) to another IRA (second
IRA). The contribution is treated as made to the second
For more information about reporting corrective
IRA (recharacterization). A recharacterization may be
distributions, see the Guide to Distribution Codes, later;
made with the same trustee or with another trustee. The
Notice 89-32, 1989-1 C.B. 671; Notice 88-33, 1988-1 C.B.
trustee of the first IRA must report the recharacterization
513; Notice 87-77, 1987-2 C.B. 385; and the Regulations
as a distribution on Form 1099-R and the contribution to
under sections 401(k), 401(m), 402(g), and 457.
the first IRA and its character on Form 5498.
Excess deferrals. Excess deferrals under section 402(g)
Enter the fair market value (FMV) of the amount
can occur in section 401(k) plans, section 403(b) plans, or
recharacterized in box 1, 0 (zero) in box 2a, and Code R
SARSEPs. If distributed by April 15 of the year following
in box 7 if reporting a recharacterization of a prior-year
the year of deferral, the excess is taxable to the
(2016) contribution or Code N if reporting a
participant in the year of deferral (other than designated
recharacterization of a contribution in the same year
Roth contributions), but the earnings are taxable in the
(2017). It is not necessary to check the IRA/SEP/SIMPLE
year distributed. Except for a SARSEP, if the distribution
checkbox. For more information on how to report, see
occurs after April 15, the excess is taxable in the year of
Notice 2000-30 on page 1266 of Internal Revenue Bulletin
deferral and the year distributed. The earnings are taxable
2000-25 at
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
contributions subject to the IRA contribution limits.
under section 1035, under which any designated
Corrective distributions of excess deferrals are not subject
distribution may be made. For a section 1035 exchange
to federal income tax withholding or social security and
that is in part taxable, file a separate Form 1099-R to
Medicare taxes. For losses on excess deferrals, see
report the taxable amount. See Section 1035 exchange,
Losses, later. See Regulations section 1.457-4(e) for
earlier.
special rules relating to excess deferrals under
SIMPLE IRAs. Do not report a trustee-to-trustee transfer
governmental section 457(b) plans.
from one SIMPLE IRA to another SIMPLE IRA. However,
Excess contributions. Excess contributions can occur
you must report as a taxable distribution in boxes 1 and 2a
in a section 401(k) plan or a SARSEP. All distributions of
a trustee-to-trustee transfer from a SIMPLE IRA to an IRA
the excess contributions plus earnings (other than
that is not a SIMPLE IRA during the 2-year period
designated Roth contributions), including recharacterized
beginning on the day contributions are first deposited in
excess contributions, are taxable to the participant in the
the individual's SIMPLE IRA by the employer. Use Code S
year of distribution. Report the gross distribution in box 1
in box 7 if appropriate.
of Form 1099-R. In box 2a, enter the excess contribution
and earnings distributed less any designated Roth
contributions. For a SARSEP, the employer must notify
-6-
Instructions for Forms 1099-R and 5498 (2017)
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