What is a 1099R?
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- Опубликовано: 7 апр 2021
- The 1099R Form is one of several forms in the 1099 series. These forms are provided whenever you receive money from a retirement plan or annuity. But you don't have to be retired to get one.
This video is a rundown of what's on a 1099R Form and how the different numbers on the form affect your tax liability.
Related Videos:
IRA 101: IRA Distributions: • IRA 101: Traditional I...
IRA 101: Rollovers: • IRA 101: Rollovers
IRA 101: Roth IRAs: • A guide to Roth IRAs
Early Withdrawal Penalties and how to avoid them: • Early Retirement Distr...
Additional resources:
IRS Form 1099R: www.irs.gov/pub/irs-pdf/f1099...
Instructions for Form 1099R: www.irs.gov/pub/irs.pdf/i1099...
IRS Publication 590-B: "Distributions from Individual Retirement Arrangements": www.irs.gov/pub/irs-pdf/p590b...
Ascensus.com: "IRS Form 1099-R Box 7 Distribution Codes": thelink.ascensus.com/articles...
The Tax Geek on Twitter: @taxgeekusa
The Tax Geek on Reddit: www.reddit.com/r/askataxgeek
Intro and background music: “Bluesy Vibes” - Doug Maxwell - RUclips Audio Library
DISCLAIMER:
The information presented in this video is for informational and educational purposes only, and is not intended to render tax advice for specific situations. If you have questions about your specific tax situation, please consult the resources linked above or consult with a qualified tax professional in your community.
The information contained in this video is based on tax law and IRS regulations as of the date of publication, and may be subject to change.
Love your approach and detail. Thank you very much!
You're very welcome!
Thank you for the clear explanation. I am grateful.
Good Explanation Thanks sir
You're most welcome, I really appreciate your kind words.
I liked this video 5 months ago & now it's 'go time'. I retired July 2021 and have: Soc Sec, 3 small union pensions, and a state pension. Also, I rolled over a Roth IRA (code H?) and a Traditional IRA - into physical gold IRA's. Should I hire a CPA to get off on the right foot in retirement, or try Turbo Tax again this year?
It depends on your level of confidence in your own abilities. If they're used carefully, DIY products deliver fine results. For peace of mind, nothing beats a professional preparer. What's more, they can give you advice in a way that a computer program can't. You don't have to go the full CPA route--all the major retail tax preparers have senior preparers that can handle anything that's thrown at them. Good luck!
I had a 1099R with code P in box 7 for over contribution in my 401 K plan
Apparently, your employer allowed you to contribute more the maximum allowed amount ($19,000 or $25,000 if you're over age 50) to your 401(k) plan. To avoid penalties for excess contributions, the plan administrator distributed the excess contributions (and the associated earnings) to you. The excess contributions are taxable in the year that they were made.
@@TheTaxGeek That was very kind of you to have explained that.
I have a code 8 on a distribution that is my financial management company's roll-back of money they moved from my employer pension plan to my IRA - and back again. I do not understand how to file this with the IRS. The taxable amount is $0. I am retired.
The full amount of the distribution goes on line 5a and the taxable amount , which is $0, on line 5b. This of course would be in addition to any other retirement benefits you receive.
Hi Enjoyed the video. I have a self-directed 401k and I rolled it over to a self directed IRA. Cash value of the direct rollover was $130K. I transferred 2 rental properties owned by the solo 401k and 1 rental property owned by an LLC that was owned by the 401k. So I did 3 in-kind transfers between the 401k and the IRA. I need to document the transaction to the IRS. What do I put on the 1099-R? I'm also 70 years old if that makes a difference for the reporting. I setup the IRA with a passive custodian. The self directed 401k was also a passive custodian. Thoughts on what is needed for reporting? And who would you recommend? I'm having a hard time finding a CPA that wants to work with me.
You basically have two choices when valuing the properties for reporting the transfer on a 1099R: the adjusted basis (purchase price + purchase costs + permanent improvements to the properties - the accumulated depreciation you took), or the fair market value of the properties as of the date of transfer. I would use the adjusted basis since it's the figure we know for sure. However, in two (or three) years, you're going to have to start taking RMDs, and those RMDs are going to be calculated using the Fair Market Value of the properties. Since any distributions will be entirely taxable (unlike a traditional property sale, there should be no "basis"), I don't think it's going to matter which figure you use, as long as it's reasonable.
@@TheTaxGeek i used fair market value.. Thanks that helps a lot. Is there a time limit for sending a 1099-R to the IRS after doing a direct transfer?
January 31, 2023
You did not explain code W for box 7? I also have the same amount in Box 8 and in Box 1 distribution., but zero dollars in box 2a. Do i pay tax on the "other" box 8? This is a long term assist housing policy.
If the amount in box 2a is "0," then the distribution isn't taxable. Code "W" in box 7 is very unusual, and my goal in the video was to cover the most common distribution codes that people would encounter.
@@TheTaxGeek Thanks from us Seniors who look for the young ones to help. W is becoming more popular for those who want to put away for that retirement center to enjoy life, but have a medical person on call. LOL
My 1099-r form does not have any boxes after 16 and 16 is blank. ( There are no boxes 17-19). What should I do?
Unless where you live has a local (city or county) income tax, there is no need for boxes 17 - 19. Oftentimes 1099-R payers don't report the retirement income to your state, which is why that box is blank. But that doesn't mean that income is not taxable to the state, if your state taxes such income. If you enter blank amounts (not ZERO) into tax software for box 16, the software will automatically assume what is taxable for Federal purposes is also taxable for state.
Look like I have to pay another 10% taxes on my recent withdraw amount from 401K ? But i did pay 20% right the way from amount and I still federal owe money? I use that $ for house down payment.. not left any to pay
As I have mentioned in at least a couple of my videos, having money withheld from a retirement distribution is NOT "paying the taxes" on the distribution. The withholding is only putting money aside for any possible taxes and penalties from the distribution. Retirement distributions can generate income taxes, which vary according to all your other income. They can come with penalties for early withdrawal. And they can reduce, or reduce your eligibility for certain tax credits. If you're planning on using 401(k) money for a house down payment, the best thing to do is borrow the money from your 401(k) if your plan allows it. The next best thing to do is roll the 401(k) money over into an IRA and withdraw the down payment from the IRA, since that will avoid the 10% penalty. Unfortunately in your case what's done is done. Hopefully you'll have enough withholding from your other income to cover any additional taxes, penalties, or lost credits.
What code I use if I am 64 not get penalized? Anyone know please? Thank you .
When inheriting a Roth IRA you have to transfer the original Roth IRA funds into a custodian beneficiary Roth IRA account, but its not clear if the beneficiary's account or the original owner's account needs to have existed for 5 years for earnings to be tax free. The 1099R gave a T code.
Will I be taxed on earnings from my inherited Roth IRA as a non-spouse beneficiary if my beneficiary Roth account holding the funds was opened only 2 years ago but my mother's original Roth was over 5 years old?
Does the original owner or the beneficiary need to have held ownership of the Roth IRA funds for over 5 years for the distributed earnings to be tax free?
I did some research through a variety of sources (including the IRS) and I cannot get a clear answer to that question. The "T" code usually indicates a Roth distribution that may be subject to an exception to the ordinary rules. Every source I consult says the distributions are tax free if the "five year" rule is met, but it's unclear as to whether it's the original Roth IRA or the new one. Sorry I couldn't be more helpful than that.
@@TheTaxGeek Thank you for your research. I really don't know what to do. I asked dozens of "tax experts" on HR Block and TurboTax but I get different answers every time. Some say use Q instead if I know its 5 years old, some say put $0 for 2a, one even said I need to enter basis. I am afraid to hire an expensive CPA that is just one more person with an opinion and no way to verify if they are correct. $15,000+ in taxes on the line.
What do you recommend doing when every tax professional says something different for how to handle this?
Hey it’s my first time I got a 1099 r and I want to know what to do with it
The simple answer is to enter it into tax software. Answer "yes" to the question "Did you have any retirement income?" and enter the amounts from the form. The software will put it all into the right place. If the "IRA" box is checked on the form, the total amount of the distribution is entered on line 4a, and the taxable amount of that distribution on line 4b. If it isn't, the total income goes on line 5a and the taxable amount on line 5b. Any withholding on the form is entered on line 25b. If the distribution code is a "1," watch my video on Retirement Distribution Penalties, and it will tell you what can do.
If I pull out money from my 403b to buy a house how would I fill this form out?
You don't fill out a 1099R. It is sent to you by the custodian of your retirement fund, giving you the information you need to file next year's taxes. You will owe income tax and a 10% penalty on the amount withdrawn if you are under 59-1/2. If you're going to do that, please make sure to have at least 20% of the withdrawal withheld for Federal taxes and 5% for state taxes if you live in a state with an income tax. And before you make your decision, watch this video: ruclips.net/video/nGZw99WIoo8/видео.html
Where do I report 1099-R Code U from my 401K in 1040 Form? What line and any penalty?
1099R Code "U" are distributions of dividends from an Employer Stock Ownership Plan. they are taxable and reported on line 5b of Form 1040. They are not subject to any early distribution penalty. This is a very rare code. Most ESOPs report dividends on form 1099 DIV.
Thanks for the reply.
If I borrowed and had it taxed I am 64 with letter I use in the box? Would it be 7 I am not retired work part time . Any answer be appreciated. Code 7 Ty
Since you're over age 59-1/2, the distribution code would be "7" for Normal Distribution. the amount would be subject to income tax but there would be no penalty for early withdrawal. It doesn't matter whether you're working or not.
@@TheTaxGeek Thank you so much . I appreciate your reply more then you know. I am getting back more then I thought. Still waiting on all my papers and 1099 R come in the mail. I was just playing around with it. Thanks Again 🙂ps I did have taxes withheld.
I rolled over my 401K from ADP to Vanguard last yea. And I received 1099-R form. Do I need to file this form?
Yes, the amount you rolled over is reported on line 5a. Since it was a rollover, the taxable amount on line 5b is zero.
@@TheTaxGeek yes correct! $0.00
Is that mean I should file this form 🤔? Correct?
Do I need to send anything to the IRs? My son has a 1099r. What form do I use?
If your son is under 19, he would have to file a tax return if the amount of the payout is over $1,100 (and that's his only income). If the amount is over $2,200, your son might be liable for "Kiddie Tax." the best thing to do is seek the help from a qualified Tax Professional in your community. For more on "Kiddie Tax": ruclips.net/video/KWdv6ClHuQc/видео.html
@@TheTaxGeek he's 32. The payout was just over 13,000 and the tax was about 2,200. So, does he need to send a 1040 to the IRS?
Yes, his income is just over the filing requirement. If nothing else, he would want to get some of that withholding back.
how do I file 2 1009-r code g and 1 1099-r code 7 ?
Code "G" is a direct rollover and the amount is entered into line 4a if it is from an IRA or 5a if is from a 401(k), and "0" is entered on line 4b or 5b, since it is not taxable. Code 7 is a normal distribution and the amount from box 1 is entered into line 4a or 5a and the amount from box 2a is entered on line 4b or 5b.
@@TheTaxGeek thank you for info. So I can put two with code G on one line ?
Yes, you combine then all on one line. Any 1099R with the "IRA" box checked goes on line 4 and all others go on line 5.
How do I get my 1099R
I should have been mailed to you. If it wasn't, you can contact the payer by phone or on the web and have a new one issued.
I have 2022 two 1099-R differents taxable amount do i add the amount together?
If you have two different Forms 1099-R, you add the two taxable amounts together for lines 4 or 5 b. If one 1099-r shows different amounts for total and taxable income, the total income goes on line 4 or 5 a and the taxable amount on line 4 or 5 b
I left USA in 2021 and I had withdrawn all my 401 K amount last year - 2023, since 2021 I have no job in USA, could you please suggest how can I claim the 20% tax withholding?
Unfortunately, I'm not an expert in this area. If you're a U.S. citizen, the income is definitely taxable. If you're not, the income may still be taxable to the U.S. since the income is "effectively connected" with the U.S. But, as I say, I'm not an expert. I would seek another opinion.
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