Form 1099-R

After-Tax Real Rate of Return

What is Form 1099-R?

Form 1099-R is an Internal Revenue Service (IRS) tax form for declaring distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts, or pensions.TheIt deals specifically with passive income and retirement plans.

It is one of the 1099 series forms called information returns. These forms are used to report various types of income that a person can receive, other than wages, such as income from an independent contractor, interest and dividends, government payment and many more.TheThe

It is available for download from the IRS website.

Key points to remember

  • Form 1099-R is used to report distributions from annuities, profit sharing plans, retirement plans, IRAs, insurance contracts or pensions.
  • Anyone making a distribution over $ 10 requires a Form 1099-R.
  • The form is provided by the plan issuer.

Understanding Form 1099-R

According to the IRS, a person who makes one of the following distributions over $ 10 requires a Form 1099-R:TheThe

  • Incentive or retirement plans
  • Any individual retirement account (IRA)
  • Annuities, Pensions, Insurance Contracts or Survivor Income Benefit Plans
  • Permanent and total disability payments under life insurance contracts
  • Charitable annuities

On the other hand, a person who receives a 1099-R in error should immediately contact the plan custodian to rectify the situation and avoid filing an incorrect tax return.

Anyone who receives a 1099-R must include the amount shown on their tax return and pay taxes accordingly.

How to File Form 1099-R

As with other IRS forms, Form 1099-R must also include the payer’s taxpayer name, address, telephone number and identification number. It must also contain the name, address and identification number of the recipient’s taxpayer.

Some of the other elements included in the form are the gross distribution paid during the taxation year, the amount of the taxable distribution, the federal income tax withheld at source, all contributions paid to the investment or the premiums paid and a code representing the type of distributions paid to the plan holder.TheThe form is provided by the plan issuer.

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