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What is the purpose of a 1099-R form?

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Quick Answer

Form 1099-R is a type of form that is used to show distributions from retirement accounts to taxpayers, according to Intuit. The form, which is Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., is issued by plan administrators to report distributions to retirees; plans furnish a copy to the retiree and send a copy to the Internal Revenue Service each year. The form is also used in reporting certain other transactions involving retirement accounts.

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Full Answer

Form 1099-R is sent out to any taxpayer or retiree who receives a distribution greater than $10 from a retirement plan during the tax year, states Intuit. In addition to reporting distributions, this form is also used to report money moved to a Roth IRA from a traditional retirement plan, which is known as a conversion. Form 1099-R is also used for reporting money rolled over from one retirement savings plan into another, and also reversals of rollovers or conversions to Roth IRA, which are known as recharacterizations.

Although the 1099-R is a common tax form associated with retirement plans, retirees may also receive other forms in lieu of this form or alongside it, advises Intuit. These forms include the SSA-1099, Information About SSA-1099 Benefit Statement, or CSA-1099-R Civil Service Retirement Benefits or CSF-1099-R and Federal Employees Retirement System.

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