With the start of the new year, we’re getting all of our ducks in a row! At the beginning of the year, IRA custodians like Quest are busy gathering information so we can provide you with valuable tax reporting forms. We want to ensure you know what this form is and what you may be responsible for! Below is an overview of the 1099-R form you may expect to receive in the upcoming weeks to prepare for the upcoming tax season.
What is IRS Form 1099-R?
The 1099-R form is used to report potentially taxable distributions from retirement accounts. Generally, you receive one if you have completed a distribution of $10 or more from your retirement plan. They are made available to you in January (which you can view in your Client Portal), if applicable. You send these in with your yearly IRS tax filings.
Will I get a 1099-R?
The IRS requires issuers to file a 1099-R whenever they make an eligible distribution from any of the following plans:
- Profit-sharing or retirement plans
- Certain life insurance contracts
- Charitable gift annuities
- Survivor income benefit plans
In some cases, there are other movements that would generate a 1099-R, such as
- Taking an early distribution from a traditional IRA
- A rollover from a 401(k) to an IRA
- Closing a traditional or Roth IRA
What do I do with my 1099-R ?
The information found on your 1099-R will help you as you prepare your tax return. You need to gather all of your 1099-Rs if you need to report multiple benefits in your 1099-R as income when you prepare your tax return. There are many factors that determine if you have to pay tax on any distributions reported on your 1099-R, always speak to a knowledgeable representative who could help!
If you have additional questions about your 1099-R, contact a Quest specialist and we would be happy to answer any questions we can. You can always reach an IRA Specialist at 855-FUN-IRAs or by scheduling a free consultation with an IRA Specialist.