1099-R

If your retirement plan had distributions from it this year, you must report these to the participants on a Form 1099-R. A distribution will have occurred from your plan for a number of reasons including a cash or rollover distribution due to terminations, retirement, RMD’s, hardships, outstanding loan balances, death benefit or a plan correction. Form 1099-R is used for reporting purposes when participants file their personal tax return and will show the gross distribution amount, how much is taxable, any amounts withheld for taxes and a code. Any distributions from the plan for a participant over $10 must be reported; however, whether or not a distribution is taxable is determined by the type of distribution received.

A Form 1099-R must be mailed to individuals no later than January 31, 2019. The IRS must receive a copy of the 1099-R by February 28, 2019; however, if you file electronically the deadline is April 1, 2019.

If your plan asset custodian does not issue the 1099-R forms, Watkins Ross can prepare these for you. Failure to file a 1099-R or filing a 1099-R with incorrect information could result in penalties.

Additional information is provided in the IRS Instructions for Forms 1099-R and 5498.