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Form 1099-R Instructions for 2026
A Box-by-Box Walkthrough for Payers and Filers
Charles Hardy | Last Updated: Oct 01, 2026
Form 1099-R box-by-box instructions
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Box 1, Gross distribution
Enter the total amount distributed during the tax year, before any tax withholding. If $2,000 was withheld from a $10,000 distribution, Box 1 still reports $10,000, the full amount before withholding.
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Box 2a, Taxable amount
Enter the portion of Box 1 that is taxable to the recipient. This figure equals Box 1 in most cases, but not always. When part of the distribution consists of the recipient’s own after-tax contributions, or represents a return of principal from a nonqualified annuity, Box 2a will be lower than Box 1.
For example, a traditional IRA funded entirely with pre-tax contributions will generally show the same figure in Box 1 and Box 2a. An annuity that includes after-tax contributions will show a lower figure in Box 2a, since that portion was already taxed before it was contributed.
If the taxable amount cannot be determined, for instance, when cost-basis records for an older account are incomplete, check the “Taxable amount not determined” box instead of entering an estimate.
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Box 3, Capital gain
Enter the portion of a lump-sum distribution that qualifies for capital gains treatment. This applies only to distributions that include plan participation before 1974. It does not apply to most current-day 401(k) or IRA distributions, and should be left blank when there is no pre-1974 participation to report.
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Box 4, Federal income tax withheld
Enter the amount of federal income tax actually withheld and remitted on the recipient’s behalf. This is the amount withheld, not the amount that should have been withheld based on the recipient’s ultimate tax liability.
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Box 5, Employee contributions / insurance premiums
Enter the portion of the distribution that represents the recipient’s own after-tax contributions to the plan, or premiums paid on a life insurance contract. This amount is one reason Box 2a may be lower than Box 1: the recipient is not taxed a second time on money that was already taxed before it was contributed.
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Box 6, Net unrealized appreciation
Enter the increase in value of employer securities included in a lump-sum distribution. This appreciation is taxed at capital gains rates rather than as ordinary income when the securities are later sold.
For example, employer stock purchased within a 401(k) for $30,000 that is worth $80,000 at the time of distribution has $50,000 of net unrealized appreciation, reported here. If the distribution consists entirely of cash, this box should be left blank.
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Box 7, Distribution code(s)
Enter the code, or combination of codes, identifying the type of distribution made. This entry determines how the IRS and the recipient’s tax return treat the distribution, including whether it is taxable and whether an early distribution penalty applies. Because of its importance, Box 7 is covered in its own dedicated section below.
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Box 8a and 8b
For distributions that include annuity payments, Box 8a reports the current actuarial value of the annuity contract in dollars, and Box 8b reports that same value as a percentage of the total distribution. These two figures were combined in a single Box 8 prior to the 2026 tax year and are now reported separately.
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Box 9a, Percentage of total distribution
Complete this box only when a single distribution is divided among multiple recipients, such as several beneficiaries of the same account. Each recipient’s Box 9a reflects their percentage share of the total distribution, while Box 1 on each form reflects that recipient’s individual dollar amount.
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Box 9b, Total employee contributions
Enter the recipient’s total after-tax investment in the contract. This figure is reported so the recipient can track, across future distributions, how much represents already-taxed contributions versus new taxable income.
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Box 10, Amount allocable to IRR
Complete this box only for distributions that include amounts allocable to an in-plan Roth rollover made within the preceding five years. It does not apply to standard IRA or 401(k) distributions with no in-plan Roth rollover history.
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Box 11, First year of designated Roth contribution
Enter the year in which the recipient’s designated Roth account was first funded. This allows the recipient’s tax return to verify whether the five-year holding period required for a qualified, tax-free Roth distribution has been satisfied.
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Box 12, FATCA filing requirement
Check this box only when the filing is made to satisfy reporting obligations under FATCA, chapter 4. This generally applies to payers with foreign account reporting obligations and does not apply to most domestic plan administrators.
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Box 13, Date of payment
Enter the date of payment for certain reportable death benefit distributions. This date affects how the beneficiary’s tax treatment of the distribution is calculated.
