The 1099-R reports money you withdrew from a retirement account or annuity
A 1099-R is a tax form that reports distributions — money you took out — from retirement accounts, pensions, annuities, or insurance contracts. If you withdrew money from an IRA, 401(k), 403(b), pension plan, or similar account during the year, the institution holding that account will send you a 1099-R by January 31st of the following year. You use this form to report those withdrawals on your tax return.
The form shows how much you withdrew, whether taxes were withheld from the distribution, and the reason for the withdrawal. The reason code matters because some withdrawals are taxed differently than others — a withdrawal before age 59½ may trigger a penalty, while a rollover to another retirement account may not be taxable at all.
You receive a 1099-R for each account from which you took a distribution. If you have multiple IRAs or retirement accounts and withdrew from several of them, you will receive multiple forms.
Key Takeaways
- A 1099-R reports any money you withdrew from a retirement account, pension, or annuity during the tax year.
- The form shows the gross distribution amount, any taxes withheld, and a code indicating why you took the money out.
- You must report the distribution on your tax return, even if no taxes were withheld from it.
- Some distributions are fully taxable, some are partially taxable, and some may be tax-free depending on the account type and reason for withdrawal.
- If you rolled over money to another retirement account, the 1099-R will show that with a specific code so you can exclude it from taxable income.
Who sends you a 1099-R and when
The financial institution that holds your retirement account — a bank, brokerage, insurance company, or plan administrator — is responsible for sending the 1099-R. They mail it to you and file a copy with the IRS by January 31st of the year after you made the withdrawal.
You should receive your 1099-R in the mail or through your account's online portal by the end of January. If you do not receive it by early February, contact the institution directly. You will need the form to file your tax return accurately, so do not wait until April to look for it.
The boxes on the 1099-R and what they mean
The 1099-R has several numbered boxes, each reporting different information about your distribution. Box 1 shows the gross distribution — the total amount withdrawn before any taxes were taken out. Box 2a shows federal income tax withheld, if any. These two numbers are the most important for your tax return.
Box 7 contains a one or two-digit code that describes the reason for the distribution. Code 1 means it was an early withdrawal (before age 59½). Code 2 means it was a death distribution. Code 7 means it was a normal distribution at retirement age. Code G means it was a direct rollover to another retirement account. The code in Box 7 tells you and the IRS whether the withdrawal is subject to the 10% early withdrawal penalty and how much of it is taxable.
Boxes 5 and 6 show whether any of the distribution was from a Roth account or a non-taxable portion. If you have a traditional IRA with both pre-tax and after-tax contributions, these boxes help you calculate how much of your withdrawal is taxable.
How distributions are taxed
Most distributions from traditional IRAs, 401(k)s, and similar accounts are taxed as ordinary income at your regular tax rate. If you withdrew $10,000 from a traditional IRA, that $10,000 is added to your other income for the year and taxed accordingly. The financial institution may have withheld federal income tax already — that amount appears in Box 2a — but you may owe more or less when you file your return.
Withdrawals before age 59½ from most retirement accounts are subject to a 10% early withdrawal penalty on top of regular income tax, unless an exception applies. Common exceptions include withdrawals for a first-time home purchase (up to $10,000 lifetime from an IRA), medical expenses, disability, or substantially equal periodic payments. The 1099-R code in Box 7 indicates whether an exception was claimed.
Roth IRA distributions are different. Money you contributed to a Roth (your basis) comes out tax-free. Earnings on that money are tax-free if you are over 59½ and have held the account for at least five years. If you withdraw earnings early, they are taxable and may be subject to the 10% penalty. The 1099-R will show which portion is basis and which is earnings.
What to do if you received a 1099-R you did not expect
If you received a 1099-R for an account you thought was still invested or for a withdrawal you do not remember making, contact the financial institution when ready. Errors happen — the form may have been sent to the wrong address, or the institution may have processed a transaction incorrectly.
If you rolled over money from one retirement account to another and received a 1099-R, that is normal. The form will show the rollover code (usually 7 or G in Box 7), which tells the IRS that the distribution was not taxable. You must report the distribution on your tax return but exclude it from taxable income using the appropriate line on your return.
Do not ignore a 1099-R. The IRS receives a copy, and if you do not report the distribution on your return, the IRS will notice the mismatch and may send you a notice or bill for unpaid taxes.
Reporting the 1099-R on your tax return
You report 1099-R distributions on Form 1040, the main federal income tax return. The specific line depends on the type of account and the nature of the distribution. Traditional IRA distributions go on Line 4a (total) and Line 4b (taxable amount). Pension and annuity distributions go on Lines 5a and 5b. 401(k) and 403(b) distributions also go on Lines 5a and 5b.
If the entire distribution is taxable, you report the full amount from Box 1. If part of it is not taxable — such as a rollover or a return of basis — you calculate the taxable portion and report only that amount on Line 4b or 5b. Your tax software or a tax professional can help you determine the taxable amount if you are unsure.
If you owe the 10% early withdrawal penalty, you report that separately on Form 5329. The penalty is calculated on the taxable portion of the distribution and is added to your tax bill.
When you might not receive a 1099-R
You will not receive a 1099-R for distributions under $10 from most accounts, though some institutions report all distributions regardless of size. You also will not receive one if you did not actually withdraw money — for example, if you only transferred funds between accounts you own or if the account earned interest or dividends that stayed invested.
If you inherited a retirement account and took a distribution as a beneficiary, you will receive a 1099-R showing the distribution code for inherited accounts. The tax treatment of inherited account distributions depends on your relationship to the original account holder and the account type, so consult a tax professional if you are unsure how to report it.
Frequently Asked Questions
Do I have to report a 1099-R if taxes were already withheld?
Yes. You must report the full distribution amount on your tax return, even if the financial institution withheld federal income tax. The withholding is a credit against your total tax bill, but the distribution itself is still income that must be reported. If too much was withheld, you will receive a refund when you file.
What does it mean if Box 7 shows code 7?
Code 7 means the distribution was a normal distribution — you were age 59½ or older when you withdrew the money, or it was from a may have access to plan and you met the plan's distribution rules. This code means the withdrawal is not subject to the 10% early withdrawal penalty, though it is still taxable as ordinary income.
Can I avoid taxes on a 1099-R distribution by rolling it over?
Yes, if you roll the money into another may be able to access retirement account within 60 days. The 1099-R will show the rollover code, and you exclude the distribution from taxable income on your return. If you miss the 60-day important date, the full amount becomes taxable and may be subject to the 10% penalty if you are under 59½.
What if I received a 1099-R but the amount is wrong?
Contact the financial institution that issued the form and ask them to issue a corrected 1099-R. They will send you a corrected form and file a corrected copy with the IRS. Do not file your tax return until you have the correct form, or contact a tax professional for guidance on how to handle the discrepancy.
Do I need to attach the 1099-R to my tax return?
No. You do not mail the 1099-R with your return. You keep it for your records. The financial institution files a copy with the IRS, so the IRS already has the information. If you file electronically, your tax software will prompt you to enter the information from the form.