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.
Related Articles You Might Like
2019 Defined Benefit Plan Compliance Calendar
2019 Defined Benefit Plan Compliance CalendarIt’s that time of year again to look ahead and think about the annual requirements for your qualified plan! Since a qualified retirement plan must meet various requirements throughout the year to retain the qualified...
2019 Government Shut Down Affects Lump Sum Payments from Defined Benefit Plans
2019 GOVERNMENT SHUT DOWN AFFECTS LUMP SUM PAYMENTS FROM DEFINED BENEFIT PLANSDid you know the government shut down affects the lump sum payments from your defined benefit pension plan? If your defined benefit plan has a lump sum payment option, the plan document must...
2018 Census Request Reporting
2018 Census Request ReportingCan you believe we’re already in the last quarter of 2018? This means it’s time to think about completing the 2018 census request for calendar plan years! Whether you’ve done this for years or you’re new to the process, it’s important to...