Key Insights about IRS Form 1099-R
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Report any distribution of $10 or more from a pension, annuity, retirement plan, IRA, or insurance contract.
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For the 2026 tax year, recipient copies are due February 1, 2027; paper filing, March 1, 2027; e-filing,
March 31, 2027.
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Box 7 is now split into four sub-boxes (7a–7d) to capture new Trump Account distributions.
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Form 1099-R qualifies for an automatic 30-day extension, unlike Form 1099-NEC or Form W-2.
What is Form 1099-R?
Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., is an IRS information return that payers must file to report money paid out of a retirement account or similar arrangement during the tax year.
As the payer, you’re responsible for both filing this form with the IRS and furnishing a copy to the recipient.
Form 1099-R covers distributions from:
- Pensions and annuities
- Profit-sharing and retirement plans, including 401(k) and 403(b) plans
- Individual Retirement Arrangements (IRAs), including traditional, Roth, SEP, and SIMPLE IRAs
- Insurance contracts and charitable gift annuities
- Death benefit payments
- Disability payments made under a retirement plan
A designated distribution of $10 or more from any of these sources triggers the filing requirement.
Who must file Form 1099-R?
You must file Form 1099-R if you’re one of the following, and you made a reportable distribution of $10 or more during the tax year:
- Retirement plan administrators
- Financial institutions and IRA custodians
- Insurance companies issuing annuity or life insurance contract payments
- Government agencies making pension or retirement payments
- Employers making death benefit or disability payments under a retirement plan
Even a fully nontaxable direct rollover between qualified accounts must be reported. The filing requirement is based on the distribution occurring, not on whether the amount is ultimately taxable to the recipient.
What’s new on Form 1099-R for the 2026 tax year?
The IRS released the final 2026 Form 1099-R and its instructions on June 23, 2026, introducing the most significant structural changes to this form in several years.
Box 7 is now four boxes instead of one:
| Box |
What it reports |
| 7a |
Distribution code(s), the same codes filers have always used |
| 7b |
IRA/SEP/SIMPLE checkbox |
| 7c |
Trump account checkbox, marked when the distribution comes from a Trump Account |
| 7d |
Earnings on excess Trump Account contributions, subject to a 100 percent excise tax |
Update your distribution-code logic now if your system still treats Box 7 as a single field.
- Box 8 is now two boxes: split into Box 8a (dollar amount) and Box 8b (percentage).
- Address fields are broken out: payer and recipient address blocks are now separated into individual entry fields, rather than a single
free-text line.
- Code Y remains optional for 2026: used in Box 7a to identify a Qualified Charitable Distribution (QCD) under Section 408(d)(8). It was introduced as optional for the 2025 tax year and stays optional for 2026.
- New companion form, 5498-TA: if you administer Trump Accounts, contributions are reported separately on
Form 5498-TA, new for the 2026 tax year. Form 1099-R only reports distributions from a Trump Account, not contributions into one.
- Looking ahead: for tax years after 2026, participants will be able to receive qualified long-term care distributions from certain retirement plans, reportable on Form 1099-R and taxable to the participant but not subject to the additional 10 percent early distribution tax.
The IRS is retiring the FIRE e-file system on December 31, 2026. If your organization still files 1099-R through FIRE, plan your transition to IRIS before the 2026 tax year filing season opens in early 2027.
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What are the copies of Form 1099-R?
| Copy |
Purpose |
| Copy A |
Filed with the IRS |
| Copy 1 |
Filed with the recipient’s state, city, or local tax department, where applicable |
| Copy B |
Given to the recipient, for their federal tax return |
| Copy 2 |
Given to the recipient, for their state, city, or local tax return |
| Copy C |
Retained by the payer for their records |
When is the deadline to file Form 1099-R?
For the 2026 tax year (filed in 2027):
| Copy |
Deadline |
| Recipient copy |
February 1, 2027 |
| Paper filing with the IRS |
March 1, 2027 |
| Electronic filing with the IRS |
March 31, 2027 |
See our Form 1099-R Due Date guide for state-specific deadlines.
Can I get an extension to file Form 1099-R?
Yes. Unlike Form 1099-NEC and Form W-2, Form 1099-R qualifies for an automatic 30-day extension.
File Form 8809 electronically or by paper on or before the original due date to receive it. A separate extension, Form 15397, can be requested if you need more time to furnish recipient copies.
Are there penalties for late filing of Form 1099-R?
| Filed |
Penalty per form |
| Within 30 days of the deadline |
$60 |
| After 30 days, before August 1 |
$130 |
| After August 1, or not filed |
$340 |
| Intentional disregard |
$690, no maximum |
Annual maximum caps also apply and differ for small businesses (average annual gross receipts of $5 million or less) versus larger filers. Confirm the exact 2026 annual cap figures against the IRS’s finalized instructions before relying on them for compliance purposes.
See our 1099-R Penalty guide for a detailed breakdown.
Common Form 1099-R filing mistakes to avoid
- Using the wrong distribution code. An incorrect code in Box 7a can cause a nontaxable rollover to be flagged as taxable, or cause a recipient to lose an early-withdrawal exception they were entitled to.
- Combining incompatible codes. Only specific two-code combinations are allowed in Box 7a. If a distribution requires incompatible codes, file two separate Forms 1099-R rather than forcing them into one.
- Misreporting Trump Account activity. For 2026, Trump Account distributions must use the new Box 7c checkbox and, where applicable, Box 7d, rather than being folded into Box 7a alone.
- Treating rollovers as exempt from reporting. Even fully nontaxable direct rollovers must be reported, typically with code G or H.
- Assuming CF/SF coverage without checking. Many states participate in the Combined Federal/State Filing (CF/SF) Program for Form 1099-R, but not all do.
- Leaving address fields unmapped for 2026. With address blocks now split into individual fields, a data import built for the old single-line format may fail validation.
How to file Form 1099-R for the 2026 tax year
You can file Form 1099-R electronically or on paper, though the IRS strongly recommends e-filing.
To e-file with TaxBandits:
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Step 1: Create a free account.
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Step 2: Select or add the business you’re filing for.
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Step 3: Enter the required Form 1099-R details, including the new Box 7a–7d and 8a/8b fields.
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Step 4: Review and transmit your return to the IRS and applicable states.
E-File Form 1099-R Now, starting as low as $0.80/form.
If your recipient has questions about their 1099-R
Recipients often contact filers directly once their copy arrives, especially first-time retirees or beneficiaries. Being able to answer these questions reduces correction requests and support tickets during filing season.
Why did I get this if I rolled the money over and didn’t keep any of it?
Payers must report the distribution regardless of whether it was rolled over. Check the code in Box 7a:
- Code G identifies a direct rollover to another qualified plan or IRA
- Code H identifies a direct rollover of a designated Roth distribution to a Roth IRA
Both are generally not taxable, even though the full distribution amount appears on the form.
What does the code in Box 7a mean, and does it affect my taxes?
| Code |
Meaning |
| 1 |
Early distribution, no known exception, typically subject to a 10 percent additional tax if under 59½ |
| 2 |
Early distribution, exception applies |
| 4 |
Death benefit |
| 7 |
Normal distribution |
The amount or code on my form looks wrong. What do I do?
Verify it against your own records first. If an error is confirmed, issue a corrected Form 1099-R promptly.
I received a 1099-R for a Trump Account distribution. What’s different about this one?
For the 2026 tax year, Trump Account distributions are identified using the new Box 7c checkbox, and any taxable earnings on excess contributions appear in Box 7d.
I also got a Form 5498. Do I need to do anything with that one?
Form 5498 reports contributions and year-end value, not distributions. In most cases the recipient doesn’t need to file anything with it.
Do I need to attach my 1099-R to my tax return?
Recipients filing electronically typically don’t need to attach a physical copy, since the payer already reported the same information to the IRS.
Frequently asked questions
Any designated distribution of $10 or more from a pension, annuity, retirement plan, IRA, or insurance contract.
No. Form 1099-R reports retirement account distributions specifically, while Form 1099-NEC reports nonemployee compensation and Form 1099-MISC reports rents, prizes, and other miscellaneous payments.
No. Form 1099-R reports money coming out of a retirement account. Form 5498 reports money going into an IRA, along with year-end fair market value and RMD details.
No. Form 1096 is only required when paper filing.
Box 7 was split into four sub-boxes (7a–7d), Box 8 was split into 8a and 8b, and address fields were broken into individual entry fields.
No, it remains optional for the 2026 tax year, the same as it was for 2025.
File a corrected Form 1099-R as soon as the error is identified.
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