Form 1099-R: Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (2019)
What the Form Is For
Form 1099-R is an information return used to report distributions of $10 or more from retirement accounts and related sources. If you withdrew money from your 401(k), IRA, pension, annuity, or similar retirement account during 2019, you should receive this form from the financial institution or plan administrator that held your money.
Think of Form 1099-R as a receipt that tells both you and the IRS about money you took out of retirement savings. The form doesn't just show how much you received—it also includes important codes that explain why you took the distribution and whether special tax rules apply. This information helps determine whether you'll owe regular income tax, face early withdrawal penalties, or qualify for special tax treatment.
Common scenarios where you'd receive a 1099-R include: taking a lump-sum distribution from a former employer's 401(k), making an IRA withdrawal to cover expenses, receiving monthly pension payments as a retiree, rolling over funds from one retirement account to another, or receiving a distribution after someone's death. Even if you rolled the money directly into another retirement account without touching it yourself, you'll still receive this form.
When You'd Use It (Including Late/Amended Situations)
Normal Filing Timeline
You should receive your 1099-R by January 31, 2020 (for the 2019 tax year). The financial institution must file it with the IRS by February 28, 2020 for paper filings, or March 31, 2020 if filing electronically. You'll use this form when preparing your 2019 tax return, which was due April 15, 2020.
Missing or Late Forms
If you didn't receive your 1099-R by late February 2020, first contact the payer (the financial institution or plan administrator shown on previous statements). If you still can't get the form by early March, contact the IRS at 1-800-829-1040. The IRS can help you obtain the information, and if necessary, you can file Form 4852 (Substitute for Form W-2 or 1099-R) to report the distribution using your best estimates from account statements.
Incorrect Information
If you receive a 1099-R with errors, immediately contact the payer to request a corrected form. Common errors include wrong distribution amounts, incorrect distribution codes in Box 7, or mistakes in the taxable amount. The payer should issue a corrected 1099-R marked "CORRECTED" at the top. According to IRS Topic 154, if you receive the corrected form after you've already filed your tax return and the information differs significantly, you must file Form 1040-X (Amended U.S. Individual Income Tax Return) to correct your return.
Amended Returns
For 2019, you generally have until April 15, 2023 (three years from the original filing deadline) to file an amended return. If you discover you forgot to report a 1099-R, received a corrected form later, or made calculation errors, file Form 1040-X as soon as possible to avoid additional penalties and interest.
Key Rules for 2019
Reporting Threshold
Financial institutions must issue Form 1099-R for any distribution of $10 or more. Even if you rolled over the entire amount or believe it's not taxable, you'll still receive the form and must report it correctly on your tax return.
Age 59½ Rule
This is perhaps the most important age in retirement planning. Distributions taken before you reach age 59½ are generally considered "early distributions" and may be subject to a 10% additional early withdrawal penalty on top of regular income taxes, unless an exception applies. Once you're 59½ or older, you can generally take distributions without this penalty (though regular income tax usually still applies).
Distribution Codes Matter
Box 7 of Form 1099-R contains one or two-digit codes that are crucial for tax treatment. Code 1 indicates an early distribution with no known exception (triggering the 10% penalty). Code 2 means an early distribution where an exception applies (no 10% penalty). Code 4 indicates a death benefit distribution. Code 7 is for normal distributions (typically age 59½ or older). Code G indicates a direct rollover to another retirement account (generally not taxable). Getting this code right is essential—if it's wrong, contact your plan administrator immediately.
Required Minimum Distributions (RMDs)
For 2019, if you turned 70½ during the year, you were required to begin taking minimum distributions from traditional IRAs and most employer-sponsored retirement plans. Your first RMD was due by April 1, 2020 (the year after turning 70½). These mandatory distributions are reported on Form 1099-R and are fully taxable as ordinary income.
Roth IRA Special Rules
Distributions from Roth IRAs are reported on Form 1099-R, but Box 2a (taxable amount) is typically left blank, with the "Taxable amount not determined" box checked. Qualified Roth distributions (after age 59½ and held for 5+ years) are generally tax-free. The distribution code helps determine if you owe tax on any portion.
Rollover Protection
If you did a direct rollover (trustee-to-trustee transfer) from one retirement account to another, no taxes should be withheld, and the distribution typically isn't taxable. Code G in Box 7 indicates this situation. However, if you received the money personally and then rolled it over within 60 days, you must report both the distribution and the rollover contribution separately on your tax return to avoid double taxation.
Step-by-Step (High Level)
Step 1: Receive and Review
When your Form 1099-R arrives (by January 31), immediately check that all information is correct: your name, Social Security number, the payer's information, and especially the amounts in Boxes 1 (Gross Distribution), 2a (Taxable Amount), and the code in Box 7. Compare these figures to your own records and account statements.
Step 2: Understand Your Distribution Type
Look at Box 7 to understand what type of distribution you received. This code drives the tax treatment. For example, Code G (direct rollover) generally means no immediate tax, while Code 1 (early distribution, no exception) typically means you'll owe both income tax and a 10% penalty. If you're unsure what your code means, review the detailed code list on the back of the form or consult IRS Publication 575.
Step 3: Locate the Right Tax Form Lines
On your 2019 Form 1040, most retirement distributions are reported on line 4a (IRA distributions) or line 4b (pensions and annuities). Enter the total distribution from Box 1 of your 1099-R on line 4a (or the pension line). Then determine the taxable amount—usually from Box 2a of your 1099-R—and enter it on line 4b. If Box 2a is blank but the distribution is taxable, you'll need to calculate the taxable portion yourself or consult a tax professional.
Step 4: Attach Form 1099-R
Attach Copy B of Form 1099-R to your paper tax return if you mail it. If you file electronically, you don't need to attach the form, but keep it with your tax records. The IRS receives its own copy directly from the payer and will match it against your return.
Step 5: Calculate Additional Taxes If Applicable
If you took an early distribution (before age 59½) and no exception applies, you must complete Form 5329 (Additional Taxes on Qualified Plans) to calculate the 10% early withdrawal penalty. This gets added to your total tax bill. Exceptions include distributions due to disability, certain medical expenses, first-time home purchases (up to $10,000), or substantially equal periodic payments.
Step 6: Report Rollovers Correctly
If you did a 60-day indirect rollover (received the money then rolled it over yourself), report the distribution on line 4a, but enter $0 (or the non-rolled amount) on line 4b and write "ROLLOVER" next to the line. This shows the IRS you put the money back into a retirement account. Keep documentation of the rollover contribution in case of IRS questions.
Common Mistakes and How to Avoid Them
Mistake #1: Failing to Report the Distribution at All
The biggest error is not reporting a 1099-R on your tax return. The IRS automatically receives copies of all 1099-R forms and matches them to tax returns. If they don't see it on your return, you'll receive a CP2000 notice proposing additional tax, penalties, and interest. How to avoid: Create a tax document checklist and mark off each 1099-R as you enter it. If you use tax software, it will typically ask if you received any retirement distributions.
Mistake #2: Using the Wrong Distribution Code
Entering an incorrect code from Box 7 can trigger incorrect penalties or miss out on beneficial tax treatment. For example, if your form incorrectly shows Code 1 (early distribution with penalty) when Code 2 (exception applies) is appropriate, you'll pay an extra 10% penalty unnecessarily. How to avoid: Verify the distribution code matches your situation. If it's wrong, request a corrected 1099-R from your plan administrator immediately. Don't just change it yourself—the IRS receives the same code the payer submitted.
Mistake #3: Double-Reporting Rollovers
Some taxpayers report the full distribution as taxable income even when they rolled the money into another retirement account. This results in paying tax on money they never actually used. How to avoid: If your 1099-R shows Code G (direct rollover), report it but show $0 taxable. If you did an indirect rollover, report the distribution but offset it by indicating "ROLLOVER" and showing the appropriate taxable amount.
Mistake #4: Miscalculating the Taxable Amount
Box 2a shows the taxable amount, but it's sometimes left blank with the "Taxable amount not determined" box checked. This means you must calculate it yourself, considering any after-tax contributions you made. Many taxpayers incorrectly assume the entire distribution is taxable. How to avoid: Review IRS Publication 575 for guidance on calculating your taxable amount. If you made nondeductible (after-tax) contributions to your IRA, you'll need Form 8606 to calculate the tax-free portion. Consider hiring a tax professional for complex situations.
Mistake #5: Ignoring State Tax Implications
While Form 1099-R addresses federal taxes, retirement distributions may have different state tax treatment. Some states don't tax retirement income, while others do. Box 12-17 may show state withholding, but you're responsible for ensuring correct state tax reporting. How to avoid: Check your state's tax treatment of retirement distributions and ensure your state return accurately reflects both the distribution and any state withholding shown on the 1099-R.
Mistake #6: Missing the April 1 RMD Deadline
If you turned 70½ in 2019, your first Required Minimum Distribution was due by April 1, 2020. Some retirees forget this deadline or miscalculate the required amount. The penalty is steep: 50% of the amount you should have withdrawn but didn't. How to avoid: Contact your IRA custodian in the year you turn 70½ and ask them to calculate your RMD. Many institutions offer automatic RMD services.
What Happens After You File
IRS Matching Process
After you file your 2019 tax return, the IRS's computer systems automatically match the 1099-R information you reported against the copies they received directly from financial institutions. This typically happens several months to a year after filing. If everything matches, you generally won't hear anything from the IRS about this issue.
If There's a Mismatch
If the IRS identifies a discrepancy—such as a 1099-R they received but don't see on your return, or a reported amount that doesn't match—they'll send you a CP2000 notice titled "Proposed Changes to Your Tax Return." This usually arrives 12-18 months after you filed. The notice will propose additional tax, explain the discrepancy, and give you 30 days to respond. Don't panic: CP2000 is a proposal, not a bill. You can agree with the changes, partially agree, or disagree with documentation.
If You Need to Make Changes
If you discover an error after filing—like a missing 1099-R or incorrect reporting—file Form 1040-X (Amended U.S. Individual Income Tax Return) as soon as possible. For 2019 returns, you generally have until April 15, 2023 to amend. Filing voluntarily before the IRS contacts you typically results in lower penalties. If the amendment results in additional tax owed, pay it with the 1040-X to minimize interest charges.
Refunds and Additional Tax
If your 1099-R showed tax withholding (Box 4), that withholding was credited against your tax bill when you filed. If too much was withheld, you received a refund. If too little was withheld and you didn't make estimated payments, you may have owed additional tax at filing time, and could potentially owe an underpayment penalty if the shortfall was significant.
State Tax Follow-Up
Don't forget that state tax agencies conduct their own matching processes. If you amended your federal return regarding a 1099-R, you may need to amend your state return as well. Some states automatically adjust based on federal changes, but many require a separate amended state return.
Record Retention
Keep your 1099-R forms and related tax returns for at least three years from the filing date, but preferably seven years or longer for retirement account records. You may need these documents to prove cost basis in retirement accounts, document rollovers, or defend against future IRS inquiries. For Roth IRAs, maintain records indefinitely to prove you met the 5-year holding period for tax-free qualified distributions.
FAQs
Q1: Do I have to pay taxes on my entire 1099-R distribution?
Not necessarily. The taxable amount depends on several factors: the type of retirement account, whether you made after-tax contributions, your age, and what you did with the money. Box 2a of Form 1099-R shows the taxable amount—if it's less than Box 1 (gross distribution), part of your distribution is tax-free return of your contributions. Direct rollovers to another retirement account (Code G) are typically not taxable. Qualified Roth IRA distributions are tax-free. Always check the distribution code and consult IRS Publication 575 for your specific situation.
Q2: Will I owe the 10% early withdrawal penalty?
You'll owe the 10% additional tax if you're under age 59½ and no exception applies. Check Box 7 on your 1099-R: Code 1 means the penalty likely applies, Code 2 means an exception may apply (no penalty), and Code 7 typically means you're over 59½ (no penalty). Common exceptions include: distributions due to total disability, certain medical expenses exceeding 7.5% of AGI, IRS levy on your retirement account, substantially equal periodic payments, or first-time home purchase (up to $10,000 from an IRA). If you qualify for an exception not noted on the 1099-R, you can claim it on Form 5329.
Q3: What if I didn't receive a 1099-R but I know I took a distribution?
Contact the financial institution or plan administrator immediately. They're required to send you a copy by January 31. If you still can't obtain it by the time you need to file, contact the IRS at 1-800-829-1040 for assistance. As a last resort, you can file Form 4852 (Substitute for Form W-2 or 1099-R) using information from your account statements. But this should only be done if you've exhausted other options, as having the actual 1099-R is always preferable.
Q4: I rolled over my 401(k) to an IRA—why did I receive a 1099-R?
You'll receive a 1099-R anytime money moves out of a retirement account, even if it goes directly to another retirement account and isn't taxable. If you did a direct trustee-to-trustee rollover, Box 7 should show Code G, and Box 2a (taxable amount) should be zero or very low. You must still report this on your tax return, but you won't owe tax on it. Report the distribution on the appropriate line of Form 1040, but enter $0 (or the appropriate amount) as taxable and write "ROLLOVER" next to the line. This tells the IRS you properly moved the money to another retirement account.
Q5: Box 2a is blank on my 1099-R—what does that mean?
When Box 2a (Taxable Amount) is blank and the "Taxable amount not determined" box is checked, the payer is saying they don't have enough information to calculate your taxable amount. This commonly happens with IRAs where you may have made both deductible and nondeductible contributions over the years. You're responsible for calculating the taxable portion yourself using Form 8606 and your contribution records. The calculation involves determining what percentage of your IRA represents after-tax contributions (your basis), which isn't taxed again when distributed. This is why maintaining good records of nondeductible IRA contributions is crucial.
Q6: Can I have extra tax withheld from my retirement distributions?
Yes! Box 4 shows federal income tax withheld from your distribution. You can request withholding when you take a distribution by completing Form W-4P (for periodic payments) or Form W-4R (for non-periodic payments) with your plan administrator. For most distributions, the standard withholding is 10% for non-periodic payments and based on your W-4P elections for periodic payments. Direct rollovers (Code G) are not subject to mandatory withholding. Having appropriate tax withheld can help you avoid underpayment penalties and a large tax bill at filing time. You can also adjust withholding at any time by submitting a new form to your plan administrator.
Q7: What's the difference between Box 1 and Box 2a on Form 1099-R?
Box 1 shows the gross distribution—the total amount you received or had transferred from the retirement account before taxes. Box 2a shows the taxable amount—the portion that's subject to federal income tax. These amounts differ when: (1) part of the distribution represents a return of your after-tax contributions, (2) you did a direct rollover (Box 1 shows the full rollover amount, Box 2a shows $0), or (3) the distribution includes after-tax amounts from employer plans. Always report Box 1 on the "total distribution" line of your tax return and Box 2a on the "taxable amount" line. If Box 2a is blank, you must determine the taxable amount yourself—don't assume the entire distribution is tax-free!
Sources
IRS Form 1099-R Instructions (2019)
IRS Publication 575: Pension and Annuity Income
IRS Topic 154: Form W-2 and Form 1099-R (incorrect or missing)
IRS Topic 411: Pensions - The General Rule
IRS Form 5329: Additional Taxes on Qualified Plans
This guide is for informational purposes based on IRS guidance for the 2019 tax year. Tax situations vary greatly, so consult a qualified tax professional for advice specific to your circumstances.
