IRS Form 1099-R
Instructions for 2023 Tax Year

1. Form 1099-R Overview?

Forms 1099-R must be filed with the IRS each year to report this information, they must also be distributed to the account holders for their financial records. Financial institutions that have made a distribution of $10 or more from the retirement plans and benefits listed above, should report the amounts on IRS 1099-R Form. Payments of reportable death benefits must also be included on Form 1099-R, as well as any reportable disability payments.

2. Form 1099-R Instructions - A Detailed Look

Form 1099-DIV instructions consist of 15 boxes. Here is an overview of the information that must be entered in each one.

• Box 1 is used to report the Gross Distributions. This is the amount of the distribution before income taxes or withholdings were applied.
• Box 2a is reserved for the taxable amount of the distribution.
• Box 2b is used to indicate the total distribution, if the amount in Box 1 is the total distribution, enter an x in Box 2b.
• In Box 3, enter any amount that is taxable as a capital gain.
• In Box 4, enter the federal income tax that was withheld.
• In Box 5, enter the employees’ contributions, Roth IRA contributions, or insurance premiums that the employee is able to recover tax free.
• In Box 6, enter the net unrealized appreciation, this includes securities of the employer’s securities.
• In Box 7, use the appropriate distribution. Check if the distribution is from an IRA, SEP, or SIMPLE IRA.
• In Box 8, enter the current actuarial value of an annuity contract that is part of a lump-sum distribution. This amount should not be included in boxes 1 or 2a.
• If the distribution was made to more than one individual, enter the amount paid to the person whose name is on this Form 1099-R in Box 9a. This does not apply to IRA distributions or direct rollovers.
• Enter the total contributions made by the employee in Box 9b if applicable. This is not required information, but may be helpful for the employee.
• Enter the amount allocable to an IRR, if applicable, in Box 10.
• Enter the first year that the Roth IRA was established by this recipient in Box 11.
• If you are an FFI reporting a cash value insurance contract or annuity contract that is a U.S. account, as required under section 6047(d), indicate this in Box 12. This indicates that there is a FATCA requirement.
• If reportable death benefits were paid, enter the date of the payment in Box 13.
• In Boxes 14-19 all state and local information is reported.

3. What Are The Requirements For Filing Form 1099-R?

Distributions of $10 or more from retirement plans and benefits are required to be reported on Form 1099-R as well as reportable death benefits and reportable disability payments. The financial institution or business entity that makes these distributions and reportable payments must complete and file Form 1099-R by March 31 and recipient copies should be distributed by January 31.

4. What Are The Form 1099-R Copies?

There are five different copies of the 1099-R Tax Form that both payers and their recipients should be aware of:

• Copy A: This is the red copy that is submitted to the IRS
• Copy 1: This is submitted to the State Tax Department
• Copy B: This copy is for the recipient
• Copy 2: This copy should be filed (by the recipient) with the recipient’s state income tax return
• Copy C: This copy is for the payer’s records

5. How to E-file 1099 R Forms with TaxBandits

With TaxBandits, e-filing Form 1099-R is easy and accurate, just follow the steps below
to get started:

• Create an account with TaxBandits.
• Select or add the business you are filing for.
• Enter the required Form 1099-R details.
• Review and submit Form 1099-R to the IRS.

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