Form 1099-R Checklist: (2019) Tax Year
Purpose and Scope
Form 1099-R reports distributions from pensions, IRAs, qualified plans, section 403(b) plans, governmental section 457(b) plans, and insurance contracts. Payers must use distribution codes in Box 7 to identify the type of distribution, including codes N and R for recharacterized regular IRA contributions and Code P for excess contributions.
Code N applies when a contribution made for 2019 is recharacterized in 2019, while Code R applies when a contribution made for 2018 is recharacterized in 2019. Code P identifies excess contributions plus earnings or excess deferrals that are taxable in 2018 but distributed in 2019. The Tax Cuts and Jobs Act eliminated the ability to recharacterize Roth IRA conversions made on or after January 1, 2018, though recharacterization of regular IRA contributions remains permitted.
Filing Requirements and Recipient Information
TIN Masking and FATCA Compliance
The recipient's taxpayer identification number must be masked on Copy B provided to the recipient, displaying only the last four digits on the recipient's copy. For IRS submission, you must retain the complete TIN even though the recipient copy shows only partial digits.
Check the FATCA filing requirement box if you report under chapter 4 account reporting rules, which triggers specific reporting obligations for both payers and recipients. Recipients may have separate Form 8938 filing obligations under the 2019 instructions when this box is checked, requiring them to report specified foreign financial assets on their individual tax returns.
Recipient Copy Distribution Deadlines
You must furnish Copies B, C, and 2 to the recipient by January 31, 2020, and the recipient must attach Copy B to their federal return if Box 4 shows any federal income tax withheld. Copy C serves as the recipient's record copy, and recipients use these copies to report distributions on their tax returns and calculate any applicable taxes or penalties.
Box-by-Box Reporting Requirements
Box 1: Gross Distribution Amount
Report the total distribution received in 2019, including direct rollovers, conversions to Roth IRA, and recharacterized contributions. For disability payments received before the minimum retirement age, the recipient reports the amount on the wages line, while corrective distributions of excess deferrals or contributions require specific reporting based on contribution type and recipient status.
Boxes 2a and 2b: Taxable Amount Determination
Enter the taxable amount in Box 2a if you can compute it based on available records and contribution history. Leave Box 2a blank and check the first box in Box 2b if you cannot determine the taxable amount.
This situation commonly occurs for IRAs, SEP plans, and SIMPLE plans, where after-tax contribution information may be incomplete. Recipients must use IRS Publication 590-A or 590-B to calculate the taxable amount when issuers cannot provide it.
Box 3: Capital Gain Reporting
Report capital gain in Box 3 only for lump-sum distributions when the recipient was born before January 2, 1936, or is the beneficiary of such a person. These recipients may qualify for the 10-year tax option using Form 4972 to calculate tax on the distribution.
Form 4972 must be used by the recipient to elect treatment and compute the tax, not Schedule D, for the capital gain portion of the distribution. The capital gain portion represents a specific component of certain qualifying lump-sum distributions from qualified plans.
Box 4: Federal Income Tax Withholding
Enter all federal income tax withheld during 2019 in Box 4 of Form 1099-R. Recipients who want to change withholding or elect no withholding for future payments must provide Form W-4P to the payer before the change takes effect.
Form W-4P applies to periodic payments such as regular installments and annuities, not to nonperiodic distributions. The withholding election remains in effect until the recipient changes or revokes it in writing.
Box 5: Employee Contributions and Roth Basis
Show after-tax contributions, designated Roth account basis, or nontaxable insurance premiums recovered tax-free in 2019 in Box 5. Do not include regular IRA contributions in this box, as these amounts follow different reporting requirements.
If the amount represents the designated Roth account basis, enter the year of the first contribution in Box 11 to establish the five-year holding period. This information helps recipients determine the taxable portion of their distributions and whether they qualify for tax-free treatment.
Box 7: Distribution Code Selection
Select the appropriate distribution code or codes to identify the type of distribution:
- Code N identifies a recharacterized IRA contribution made for 2019 and recharacterized in 2019 by trustee-to-trustee transfer.
- Code P identifies excess contributions plus earnings or excess deferrals taxable in 2018 but distributed in 2019.
- Code R identifies a recharacterized IRA contribution made for 2018 and recharacterized in 2019 by trustee-to-trustee transfer.
Each code signals different income inclusion timing and Form 8606 treatment for the recipient.
Boxes 6 and 10: Special Reporting Items
Check the IRA/SEP/SIMPLE box if the distribution comes from a traditional IRA, SEP, or SIMPLE plan. Report net unrealized appreciation on employer securities in Box 6 only for lump-sum distributions from qualified plans.
Net unrealized appreciation defers taxation until the recipient sells the securities unless the recipient elects current-year inclusion on Form 4972. Enter amounts allocable to in-plan Roth rollover provisions in Box 10 when applicable within the five-year lookback period.
Boxes 12 through 17: State and Local Tax Information
Enter state tax withheld in Box 12 and the state distribution amount in Box 14 to report state-level tax information. Enter local tax withheld in Box 15, the locality name in Box 16, and the local distribution amount in Box 17 for jurisdictions that impose local income taxes.
Recipients use these boxes to report state and local taxable amounts on their respective tax returns. This information allows recipients to coordinate federal reporting with their state and local tax filing obligations.
IRS Filing Procedures
Filing Deadlines and Methods
File Copy A with the IRS by February 28, 2020, if filing on paper, or March 31, 2020, if filing electronically, to meet the annual reporting deadline. Combine all Forms 1099-R with Form 1096 as a summary transmittal for paper filings, ensuring the totals on Form 1096 match the aggregate amounts from all individual forms.
Electronic filers must use software that generates files according to Publication 1220 specifications, which outline the required file format and technical standards for electronic submissions. The IRS does not provide a fill-in PDF version for Copy A submissions, so payers must obtain official red-ink scannable forms for paper filing or use approved electronic filing methods.
Account Identification and Record Retention
Include an account, policy, or unique identifier number in the account number field on each Form 1099-R you file. This identifier helps recipients match the distribution to the correct account when they hold multiple accounts with the same payer or across different financial institutions.
You must maintain adequate records to support all reported amounts and distribution codes for the period required under federal tax law. These records must include documentation of the gross distribution, taxable amount calculations, withholding amounts, distribution codes selected, and any other information reported on the form to substantiate your reporting decisions if the IRS requests verification.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
