DEFINITION of 'Form 1099-R'

Form 1099-R is an Internal Revenue Service (IRS) form with which an individual reports his or her distributions from annuities, profit-sharing plans, retirement plans, individual retirement accounts (IRAs), insurance contracts and/or pensions. It is one of the forms in the 1099 series of forms that are known as "information returns." The 1099 forms are also used to report various types of income that a person may receive, other than salaries, such as independent contractor income, interest and dividends, government payment and many more.


As indicated by its full name, "Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.", the 1099-R deals specifically with passive income and retirement plans. Anyone who receives a 1099-R must include the amount shown on it in their income tax return and pay taxes accordingly.

Examples of Distributions Included on Form 1099-R

According to the IRS, the following are the types of distributions that give rise to the issuance of a 1099-R form:

- profit-sharing or retirement plans,

- any individual retirement arrangements (IRAs),

- annuities, pensions, insurance contracts, survivor income benefit plans,

- permanent and total disability payments under life insurance contracts,

- charitable gift annuities, etc.

Information Included on Form 1099-R

Some of the items included on the form are the gross distribution paid during the given tax year, the amount of the distribution that is taxable, the federal income tax that has been withheld at source, if any, the contributions made to the investment or premiums paid, and a code that represents the type of distributions made to the holder of the plan.

When to Expect Form 1099-R

The IRS requires plan custodians to send the form to the owner of a plan if he or she has made distributions of $10 or more from the plan in a given year. The form must be mailed to the recipients at the latest by Jan. 31 of the year after the distribution was made. In some cases, the individual needs to attach a copy of Form 1099-R to his or her tax return. The plan owner, the IRS and the municipal or state tax department (if applicable) all receive a copy of the form. These copies are used to cross-reference individual tax returns to ensure compliance.

Any person who receives an erroneous 1099-R form should immediately contact the plan custodian who sent it in order to rectify the situation and avoid filing an incorrect tax return.

  1. Individual Retirement Annuity

    An individual retirement annuity is a retirement investment vehicle ...
  2. Form 8606

    Form 8606 is a tax form distributed by the Internal Revenue Service ...
  3. IRA Adoption Agreement and Plan ...

    An IRA Adoption Agreement and Plan Document is a contract between ...
  4. Pension Plan

    A pension plan is a type of retirement plan, usually tax exempt, ...
  5. IRS Publication 939

    A document published by the Internal Revenue Service (IRS) that ...
  6. Qualified Trust

    A tax-advantaged fiduciary relationship between an employer and ...
Related Articles
  1. Retirement

    Retirement Plan Tax Form 5329: When To File

    Read this if you've taken early distributions or owe excess-contribution or excess-accumulation penalties.
  2. Taxes

    The Purpose Of 1099 Forms

    The need for 1099 forms and why you must track the income reported on them. If you don't, the IRS will find it anyway and go after you – a costly mistake.
  3. Financial Advisor

    Tough Times: Should You Dip Into Your Qualified Plan?

    401(k)s, pensions and profit-sharing plans can be a source of cash, but there are consequences to this option.
  4. Retirement

    Tax-Saving Advice for IRA Holders

    Be informed about benefits and deductions that may apply to you and avoid costly mistakes on your return.
  5. Retirement

    Asset Distributions A Key Consideration For Retirees

    How you distribute qualified retirement plan money can affect your taxes and Social Security benefits.
  6. Retirement

    Managing Annuity Distributions in Retirement

    Strategies to help manage taxable deferred annuity distribution in retirement.
  7. Retirement

    How to Speak ‘Retirement’

    Here are the key terms and words in the retirement universe.
  8. Retirement

    9 Penalty-Free IRA Withdrawals

    If you need to take early distributions, find out which exemptions allow you to avoid expensive consequences.
  9. Retirement

    Tax Treatment Of Ineligible IRA Rollovers

    Eager to save for retirement? Learn how to avoid overpayment penalties.
Hot Definitions
  1. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  2. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  3. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  4. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
  5. Annuity

    An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income ...
  6. Restricted Stock Unit - RSU

    A restricted stock unit is a compensation issued by an employer to an employee in the form of company stock.
Trading Center