IRS Form 1099-R is used report distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts, and other distributions of $10 or more during a calendar year.
Who must file this form?
It is typically filed by plan administrators or custodians of retirement plans, such as employers with pension plans. These entities are responsible for furnishing forms to each recipient and filing with the IRS.
Who receives a Form 1099-R?
Anyone that has taken distributions of $10 or more from pensions, annuities, retirement or profit-sharing plans, IRAs, or insurance contracts. It is used to report these distributions to the IRS. It details the amounts distributed and provides information about how much is taxable.
What information is required to file?
The information required for preparing a Form 1099-R includes basic information on the payer and recipient, information about the distribution, and, if applicable, state and local tax information.
It’s important for filers to double-check the data before filing to avoid any potential errors which can result in hefty penalties.
Conclusion
Understanding IRS Form 1099-R is important for both payer’s and recipients. Being aware of filing responsibilities and deadlines can help both parties avoid potential penalties. Review the deadlines today!
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.
About Author
