2023 Department of the Treasury

Internal Revenue Service

Instructions for Forms

1099-R and 5498
Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.
Section references are to the Internal Revenue Code unless Escheat to state. Payments from qualified plans to state
otherwise noted. unclaimed property funds under escheat laws must be
reported on Form 1099-R. See Plan Escheatment, later.
Future Developments
For the latest information about developments related to Form W-4R. Form W-4R is to be used only for nonperiodic
Forms 1099-R and 5498 and their instructions, such as payments and eligible rollover distributions. See Nonperiodic
legislation enacted after they were published, go to IRS.gov/ distributions, later.
Form1099R or IRS.gov/Form5498. Specific Instructions for Form 1099-R
What’s New File Form 1099-R, Distributions From Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs, Insurance
Redesign of Form 1099-R. Beginning with the 2024 forms Contracts, etc., for each person to whom you have made a
that will be processed in 2025, we are anticipating the designated distribution or are treated as having made a
redesign of Form 1099-R to reduce the number of pages. distribution of $10 or more from profit-sharing or retirement
Copy D and Instructions for Payer will be removed from the plans, any individual retirement arrangements (IRAs),
form. Copies B, C, and 2 will be on one page. All Instructions annuities, pensions, insurance contracts, survivor income
for Recipient will also be on one page. benefit plans, permanent and total disability payments under
Electronic filing of returns. The Taxpayer First Act of life insurance contracts, charitable gift annuities, etc.
2019, enacted July 1, 2019, authorized the Department of the Also, report on Form 1099-R death benefits payments
Treasury and the IRS to issue regulations that reduce the made by employers that are not made as part of a pension,
250-return requirement. If those regulations are issued and profit-sharing, or retirement plan. See Box 1, later.
effective for 2023 tax returns required to be filed in 2024, we
will post an article at IRS.gov/Form1099 explaining the Payments of reportable death benefits in accordance with
change. Until regulations are issued, however, the number final regulations published under section 6050Y must be
remains at 250. For more information, see part F in the 2023 reported on Form 1099-R.
General Instructions for Certain Information Returns.
Reportable disability payments made from a retirement
Reminders plan must be reported on Form 1099-R.
In addition, see the 2023 General Instructions for Certain Generally, do not report payments subject to withholding
Information Returns for information on the following topics. of social security and Medicare taxes on this form. Report
• Who must file (certain Foreign Financial Institutions (FFIs) such payments on Form W-2, Wage and Tax Statement.
and U.S. payers that report on Form(s) 1099 to satisfy their
Internal Revenue Code chapter 4 reporting requirements). There is no special reporting for qualified charitable
• When and where to file. TIP distributions under section 408(d)(8) or qualified
• Electronic reporting. health savings account (HSA) funding distributions
• Corrected and void returns. described in section 408(d)(9), or for the payment of qualified
• Statements to recipients. health insurance premiums (including long-term care
• Taxpayer identification numbers (TINs). insurance premiums) for retired public safety officers
• Backup withholding. described in section 402(l).
• Penalties.
Reportable death benefits. Under section 6050Y and the
• The definitions of terms applicable for chapter 4 purposes
that are referenced in these instructions. regulations thereunder, a payer must report reportable death
benefits paid after December 31, 2018, in connection with a
• Other general topics.
life insurance contract transferred after December 31, 2018,
You can get the general instructions from General in a reportable policy sale. Reportable death benefits are
Instructions for Certain Information Returns at IRS.gov/ amounts paid by reason of the death of the insured under a
1099GeneralInstructions or go to IRS.gov/Form1099R or life insurance contract that has been transferred in a
IRS.gov/Form5498. reportable policy sale. In general, a reportable policy sale is
Online fillable forms. To ease statement furnishing the acquisition of an interest in a life insurance contract,
requirements, Copies B, C, 1, and 2 have been made fillable directly or indirectly, if the acquirer has no substantial family,
online in a PDF format available at IRS.gov/Form1099R and business, or financial relationship with the insured apart from
IRS.gov/Form5498. You can complete these copies online the acquirer's interest in such life insurance contract. The
for furnishing statements to recipients and for retaining in payer of reportable death benefits must file a return that
your own files. includes certain information, including the name of the
reportable death benefits payment recipient, the date and

Dec 5, 2022 Cat. No. 27987M

gross amount of each payment, and the payer's estimate of Report premiums paid by a trustee or custodian for the
the buyer's investment in the contract. Under Regulations cost of current life or other insurance protection. Costs of
section 1.6050Y-4(e), however, a payer does not have to file current life insurance protection are not subject to the 10%
a return for reportable death benefits payments in certain additional tax under section 72(t). See Cost of current life
situations, including when the reportable death benefits insurance protection, later.
payments are made to certain foreign payees and when the Report charges or payments for a qualified long-term care
payer does not receive, and has no knowledge of any issuer insurance contract against the cash value of an annuity
having received, a reportable policy sale payment statement. contract or the cash surrender value of a life insurance
Military retirement annuities. Report payments to military contract, which is excludable from gross income under
retirees or payments of survivor benefit annuities on Form section 72(e)(11). See Code W, later.
1099-R. Report military retirement pay awarded as a property Section 1035 exchange. A tax-free section 1035
settlement to a former spouse under the name and TIN of the exchange is the exchange of (a) a life insurance contract for
recipient, not that of the military retiree. another life insurance contract, or for an endowment or
annuity contract, or for a qualified long-term care insurance
Use Code 7 in box 7 for reporting military pensions or contract; or (b) a contract of endowment insurance for
! survivor benefit annuities. Use Code 4 for reporting another contract of endowment insurance that provides for
CAUTION death benefits paid to a survivor beneficiary on a
regular payments to begin no later than they would have
separate Form 1099-R. Do not combine with any other begun under the old contract, or for an annuity contract, or for
codes. a qualified long-term care insurance contract; or (c) an
annuity contract for an annuity contract or for a qualified
Governmental section 457(b) plans. Report on Form
long-term care insurance contract; or (d) a qualified
1099-R, not Form W-2, income tax withholding and
long-term care insurance contract for a qualified long-term
distributions from a section 457(b) plan maintained by a state
care insurance contract. A contract shall not fail to be treated
or local government employer. Distributions from a
as an annuity contract or as a life insurance contract solely
governmental section 457(b) plan to a participant or
because a qualified long-term care insurance contract is a
beneficiary include all amounts that are paid from the plan.
part of or a rider on such contract. However, the distribution
For more information, see Notice 2003-20 on page 894 of
of other property or the cancellation of a contract loan at the
Internal Revenue Bulletin (IRB) 2003-19 at IRS.gov/pub/irs-
time of the exchange may be taxable and reportable on a
irbs/irb03-19.pdf. Also, see Governmental section 457(b)
separate Form 1099-R.
plan distributions, later, for information on distribution codes.
These exchanges of contracts are generally reportable on
Nonqualified plans. Report any reportable distributions Form 1099-R. However, reporting on Form 1099-R is not
from commercial annuities. Report distributions to employee required if (a) the exchange occurs within the same
plan participants from section 409A nonqualified deferred company; (b) the exchange is solely a contract for contract
compensation plans and eligible nongovernmental section exchange, as defined above, that does not result in a
457(b) plans on Form W-2, not on Form 1099-R; for designated distribution; and (c) the company maintains
nonemployees, these payments are reportable on Form adequate records of the policyholder's basis in the contracts.
1099-NEC. Report distributions to beneficiaries of deceased For example, a life insurance contract issued by Company X
plan participants on Form 1099-MISC. For more information, received in exchange solely for another life insurance
see the Instructions for Forms 1099-MISC and 1099-NEC at contract previously issued by Company X does not have to
IRS.gov/pub/irs-pdf/i1099mec.pdf. be reported on Form 1099-R as long as the company
Section 404(k) dividends. Distributions of section 404(k) maintains the required records. See Rev. Proc. 92-26,
dividends from an employee stock ownership plan (ESOP), 1992-1 C.B. 744, for certain exchanges for which reporting is
including a tax credit ESOP, are reported on Form 1099-R. not required under section 6047(d). Also, see Rev. Rul.
Distributions other than section 404(k) dividends from the 2007-24, 2007-21 I.R.B. 1282, available at IRS.gov/irb/
plan must be reported on a separate Form 1099-R. 2007-21_IRB#RR-2007-24, for certain transactions that do
Section 404(k) dividends paid directly from the not qualify as tax-free exchanges. For more information on
corporation to participants or their beneficiaries are reported partial exchanges of annuity contracts, see Rev. Proc.
on Form 1099-DIV. See Announcement 2008-56, 2008-26 2011-38, 2011-30 I.R.B. 66, available at IRS.gov/irb/
I.R.B. 1192, available at IRS.gov/irb/ 2011-30_IRB#RP-2011-38.
2008-26_IRB#ANN-2008-56. Regulations under section 6050Y provide that a section
1035 exchange constitutes a reportable policy sale in limited
Charitable gift annuities. If cash or capital gain property is circumstances. Death benefits paid by reason of the death of
donated in exchange for a charitable gift annuity, report the insured under the life insurance contract issued in such
distributions from the annuity on Form 1099-R. See circumstances are reportable death benefits that must be
Charitable gift annuities, later. reported on Form 1099-R.
Life insurance, annuity, and endowment contracts. For more information on reporting taxable exchanges, see
Report payments of matured or redeemed annuity, Box 1, later.
endowment, and life insurance contracts. However, you do
not need to file Form 1099-R to report the surrender of a life Prohibited transactions. If an IRA owner engages in a
insurance contract if it is reasonable to believe that none of prohibited transaction with respect to an IRA, the assets of
the payment is includible in the income of the recipient. If you the IRA are treated as distributed on the first day of the tax
are reporting the surrender of a life insurance contract, see year in which the prohibited transaction occurs. IRAs that
Code 7, later. See, however, Box 1, later, for FFIs reporting in hold non-marketable securities and/or closely held
a manner similar to section 6047(d) for the purposes of investments, in which the IRA owner effectively controls the
chapter 4 of the Internal Revenue Code. underlying assets of such securities or investments, have a

-2- Instructions for Forms 1099-R and 5498 (2023)

greater potential for resulting in a prohibited transaction. An IRA includes all investments under one IRA plan or
Enter Code 5 in box 7. account. File only one Form 1099-R for distributions from all
investments under one plan that are paid in 1 year to one
Designated Roth Account Contributions recipient, unless you must enter different codes in box 7. You
An employer offering a section 401(k), 403(b), or do not have to file a separate Form 1099-R for each
governmental section 457(b) plan may allow participants to distribution under the plan.
contribute all or a portion of the elective deferrals they are Roth IRAs. For distributions from a Roth IRA, report the
otherwise eligible to make to a separate designated Roth gross distribution in box 1 but generally leave box 2a blank.
account established under the plan. Contributions made Check the “Taxable amount not determined” box in box 2b.
under a section 401(k) plan must meet the requirements of Enter Code J, Q, or T, as appropriate, in box 7. Do not use
Regulations section 1.401(k)-1(f) (Regulations section any other codes with Code Q or Code T. You may enter
1.403(b)-3(c) for a section 403(b) plan). Under the terms of Code 8 or P with Code J. For the withdrawal of excess
the section 401(k) plan, section 403(b) plan, or governmental contributions, see Roth IRA under Box 2a. Taxable amount,
section 457(b) plan, the designated Roth account must meet later. It is not necessary to mark the IRA/SEP/SIMPLE
the requirements of section 402A. checkbox.
A separate Form 1099-R must be used to report the Roth IRA conversions. You must report a traditional, SEP,
! total annual distribution from a designated Roth or SIMPLE IRA distribution that you know is converted this
CAUTION account. year to a Roth IRA in boxes 1 and 2a (checking box 2b
“Taxable amount not determined” unless otherwise directed
Distributions allocable to an in-plan Roth rollover (IRR). elsewhere in these instructions), even if the conversion is a
The distribution of an amount allocable to the taxable amount trustee-to-trustee transfer or is with the same trustee. Enter
of an IRR, made within the 5-year period beginning with the Code 2 or 7 in box 7 depending on the participant's age.
first day of the participant’s tax year in which the rollover was
made, is treated as includible in gross income for purposes of IRA escheatment. Payments made from IRAs to state
applying section 72(t) to the distribution. The total amount unclaimed property funds must be reported on Form 1099-R.
allocable to such an IRR is reported in box 10. See the See Rev. Rul. 2018-17, 2018-25 I.R.B. 753, available at
instructions for Box 10, later. An IRR is a rollover within a IRS.gov/irb/2018-25_IRB#RR-2018-17, as modified by
retirement plan to a designated Roth account in the same Notice 2018-90, 2018-49 I.R.B. 826, available at IRS.gov/irb/
plan. See Notice 2010-84, 2010-51 I.R.B. 872, available at 2018-49_IRB#NOT-2018-90.
IRS.gov/irb/2010-51_IRB#NOT-2010-84, as modified by
Notice 2013-74, 2013-52 I.R.B. 819, available at IRS.gov/irb/ IRA Revocation or Account Closure
2013-52_IRB#NOT-2013-74. If a traditional or Roth IRA is revoked during its first 7 days
(under Regulations section 1.408-6(d)(4)(ii)) or is closed at
IRA Distributions any time by the IRA trustee or custodian due to a failure of
For deemed IRAs under section 408(q), use the rules the taxpayer to satisfy the Customer Identification Program
requirements described in section 326 of the USA PATRIOT
TIP that apply to traditional IRAs or Roth IRAs, as
applicable. Simplified employee pension (SEP) IRAs Act, the distribution from the IRA must be reported. In
and savings incentive match plan for employees (SIMPLE) addition, Form 5498, IRA Contribution Information, must be
IRAs, however, may not be used as deemed IRAs. filed to report any regular, rollover, Roth IRA conversion, SEP
IRA, or SIMPLE IRA contribution to an IRA that is
Deemed IRAs. For more information on deemed IRAs in subsequently revoked or closed by the trustee or custodian.
qualified employer plans, see Regulations section If a regular contribution is made to a traditional or Roth IRA
1.408(q)-1. that is later revoked or closed, and a distribution is made to
IRAs other than Roth IRAs. Unless otherwise instructed, the taxpayer, enter the gross distribution in box 1. If no
distributions from any IRA that is not a Roth IRA must be earnings are distributed, enter 0 (zero) in box 2a and Code 8
reported in boxes 1 and 2a. Check the “Taxable amount not in box 7 for a traditional IRA and Code J for a Roth IRA. If
determined” box in box 2b. But see: earnings are distributed, enter the amount of earnings in
• Traditional, SEP, or SIMPLE IRA, later, for how to report box 2a. For a traditional IRA, enter Codes 1 and 8, if
the withdrawal of IRA contributions under section 408(d)(4); applicable, in box 7; for a Roth IRA, enter Codes J and 8, if
• Transfers, later, for information on trustee-to-trustee applicable. These earnings could be subject to the 10%
transfers, including recharacterizations; additional tax under section 72(t). If a rollover contribution is
• Traditional, SEP, or SIMPLE IRA, later, for reporting a made to a traditional or Roth IRA that is later revoked or
corrective distribution from an IRA under section 408(d)(5); closed, and distribution is made to the taxpayer, enter in
• IRA Revocation or Account Closure, later, for reporting boxes 1 and 2a of Form 1099-R the gross distribution and the
IRA revocations or account closures due to Customer appropriate code in box 7 (Code J for a Roth IRA). Follow
Identification Program failures; and this same procedure for a transfer from a traditional or Roth
• Traditional, SEP, or SIMPLE IRA, later, for reporting a IRA to another IRA of the same type that is later revoked or
transfer from a SIMPLE IRA to a non-SIMPLE IRA within the closed. The distribution could be subject to the 10%
first 2 years of plan participation. additional tax under section 72(t).
The direct rollover provisions beginning later do not apply If an IRA conversion contribution or a rollover from a
to distributions from any IRA. However, taxable distributions qualified plan is made to a Roth IRA that is later revoked or
from traditional IRAs and SEP IRAs may be rolled over into closed, and a distribution is made to the taxpayer, enter the
an eligible retirement plan. See section 408(d)(3). SIMPLE gross distribution in box 1 of Form 1099-R. If no earnings are
IRAs may also be rolled over into an eligible retirement plan, distributed, enter 0 (zero) in box 2a and Code J in box 7. If
but only after the first 2 years of plan participation. earnings are distributed, enter the amount of the earnings in

Instructions for Forms 1099-R and 5498 (2023) -3-

box 2a and Code J in box 7. These earnings could be subject c. A specified period of 10 years or more.
to the 10% additional tax under section 72(t). 2. A required minimum distribution (RMD) under section
401(a)(9). A plan administrator is permitted to assume there
If an employer SEP IRA or SIMPLE IRA plan contribution
is no designated beneficiary for purposes of determining the
is made and the SEP IRA or SIMPLE IRA is revoked by the
minimum distribution.
employee or is closed by the trustee or custodian, report the
distribution as fully taxable. 3. Elective deferrals (under section 402(g)(3)) and
employee contributions (including earnings on each)
For more information on IRAs that have been revoked, returned because of the section 415 limits.
see Rev. Proc. 91-70, 1991-2 C.B. 899. 4. Corrective distributions of excess deferrals (under
section 402(g)) and earnings.
Plan Escheatment
5. Corrective distributions of excess contributions under
Payments made from qualified plans on or after January 1, a qualified cash or deferred arrangement (under section
2022, to state unclaimed property funds must be reported on 401(k)) and excess aggregate contributions (under section
Form 1099-R. See Rev. Rul. 2020-24, 2020-45 I.R.B. 965, 401(m)) and earnings.
available at IRS.gov/irb/2020-45_IRB#REV-RUL-2020-24.
6. Loans treated as deemed distributions (under section
Deductible Voluntary Employee Contributions 72(p)). However, qualified plan loan offset amounts and plan
(DVECs) loan offset amounts can be eligible rollover distributions. See
section 402(c)(3)(C) and Regulations section 1.402(c)-2,
If you are reporting a total distribution from a plan that Q/A-9 and Plan Loan Offsets, later.
includes a distribution of DVECs, you may file a separate
Form 1099-R to report the distribution of DVECs. If you do, 7. Section 404(k) dividends.
report the distribution of DVECs in boxes 1 and 2a on the 8. Cost of current life insurance protection.
separate Form 1099-R. For the direct rollover (explained 9. Distributions to a payee other than the employee, the
later) of funds that include DVECs, a separate Form 1099-R employee's surviving spouse, a spouse or former spouse
is not required to report the direct rollover of the DVECs. who is an alternate payee under a QDRO, or a nonspouse
designated beneficiary.
Direct Rollovers
10. Any hardship distribution.
You must report a direct rollover of an eligible rollover
distribution. A direct rollover is the direct payment of the 11. A permissible withdrawal under section 414(w).
distribution from a qualified plan, a section 403(b) plan, or a 12. Prohibited allocations of securities in an S corporation
governmental section 457(b) plan to a traditional IRA, Roth that are treated as deemed distributions.
IRA, or other eligible retirement plan. For additional rules 13. Distributions of premiums for accident or health
regarding the treatment of direct rollovers from designated insurance under Regulations section 1.402(a)-1(e).
Roth accounts, see Designated Roth accounts, later. A direct
rollover may be made for the employee, for the employee's Amounts paid under an annuity contract purchased for
surviving spouse, for the spouse or former spouse who is an and distributed to a participant under a qualified plan can
alternate payee under a qualified domestic relations order qualify as eligible rollover distributions. See Regulations
(QDRO), or for a nonspouse designated beneficiary, in which section 1.402(c)-2, Q/A-10.
case the direct rollover can only be made to an inherited IRA. Automatic rollovers. Eligible rollover distributions may also
If the distribution is paid to the surviving spouse, the include involuntary distributions that are more than $1,000
distribution is treated in the same manner as if the spouse but not more than $5,000 and are made from a qualified plan
were the employee. See Part V of Notice 2007-7, 2007-5 to an IRA on behalf of a plan participant. Involuntary
I.R.B. 395, available at IRS.gov/irb/ distributions are generally subject to the automatic rollover
2007-05_IRB#NOT-2007-7, and Notice 2020-51, 2020-29 provisions of section 401(a)(31)(B) and must be paid in a
I.R.B. 73, available at IRS.gov/irb/ direct rollover to an IRA, unless the plan participant elects to
2020-29_IRB#NOT-2020-51, for guidance on direct rollovers have the rollover made to another eligible retirement plan or
by nonspouse designated beneficiaries. Also, see Notice to receive the distribution directly.
2008-30, Part II, 2008-12 I.R.B. 638, available at IRS.gov/irb/
For information on the notification requirements, see
2008-12_IRB#NOT-2008-30, which has been amplified and
Explanation to Recipients Before Eligible Rollover
clarified by Notice 2009-75, 2009-39 I.R.B. 436, available at
Distributions (Section 402(f) Notice), later. For additional
IRS.gov/irb/2009-39_IRB#NOT-2009-75, for questions and
information, also see Notice 2005-5, 2005-3 I.R.B. 337,
answers covering rollover contributions to Roth IRAs.
available at IRS.gov/irb/2005-03_IRB#NOT-2005-5, as
An eligible rollover distribution is any distribution of all or modified by Notice 2005-95, 2005-51 I.R.B. 1172, available
any portion of the balance to the credit of the employee at IRS.gov/irb/2005-51_IRB#NOT-2005-95.
(including net unrealized appreciation (NUA)) from a qualified Reporting a direct rollover. Report a direct rollover in
plan, a section 403(b) plan, or a governmental section 457(b) box 1 and a 0 (zero) in box 2a, unless the rollover is a direct
plan except the following. rollover of a qualified rollover contribution other than from a
1. One of a series of substantially equal periodic designated Roth account. See Qualified rollover
payments made at least annually over: contributions as defined in section 408A(e), later. You do not
a. The life of the employee or the joint lives of the have to report capital gain in box 3 or NUA in box 6. Enter
employee and the employee's designated beneficiary, Code G in box 7 unless the rollover is a direct rollover from a
designated Roth account to a Roth IRA. See Designated
b. The life expectancy of the employee or the joint life Roth accounts, later. If the direct rollover is made by a
and last survivor expectancy of the employee and the
employee's designated beneficiary, or

-4- Instructions for Forms 1099-R and 5498 (2023)

nonspouse designated beneficiary, also enter Code 4 in For a direct rollover of a distribution from a designated
box 7. Roth account to a Roth IRA, enter the amount rolled over in
Prepare the form using the name and social security box 1 and 0 (zero) in box 2a. Use Code H in box 7. For all
number (SSN) of the person for whose benefit the funds other distributions from a designated Roth account, use
were rolled over (generally, the participant), not those of the Code B in box 7, unless Code E applies. If the direct rollover
trustee of the traditional IRA or other plan to which the funds is from one designated Roth account to another designated
were rolled. Roth account, also enter Code G in box 7.
If part of the distribution is a direct rollover and part is For a direct rollover of a distribution from a section 401(k)
distributed to the recipient, prepare two Forms 1099-R. plan, a section 403(b) plan, or a governmental section 457(b)
plan to a designated Roth account in the same plan, enter
For guidance on allocation of after-tax amounts to the amount rolled over in box 1, the taxable amount in
rollovers, see Notice 2014-54, 2014-41 I.R.B. 670, available box 2a, and any basis recovery amount in box 5. Use Code
at IRS.gov/irb/2014-41_IRB#NOT-2014-54. G in box 7.
For more information on eligible rollover distributions, Qualified rollover contributions as defined in section
including substantially equal periodic payments, RMDs, and 408A(e). A qualified rollover contribution as defined in
plan loan offset amounts, see Regulations sections section 408A(e) is:
1.402(c)-2 and 1.403(b)-7(b). See Rev. Rul. 2014-9, 2014-17 • A rollover contribution to a Roth IRA from another IRA that
I.R.B. 975, available at IRS.gov/irb/ meets the requirements of section 408(d)(3), or
2014-17_IRB#RR-2014-9, for information on rollovers to • A rollover contribution to a Roth IRA from an eligible
qualified plans. Also, see Rev. Rul. 2002-62, which is on retirement plan (other than an IRA) that meets the
page 710 of IRB 2002-42 at IRS.gov/pub/irs-irbs/ requirements of section 408A(e)(1)(B).
irb02-42.pdf, for guidance on substantially equal periodic
For reporting a rollover from an IRA other than a Roth IRA
payments.
to a Roth IRA, see Roth IRA conversions, earlier and later.
For information on distributions of amounts For a direct rollover of an eligible rollover distribution to a
TIP attributable to rollover contributions separately Roth IRA (other than from a designated Roth account), report
accounted for by an eligible retirement plan and if the total amount rolled over in box 1, the taxable amount in
permissible timing restrictions apply, see Rev. Rul. 2004-12, box 2a, and any basis recovery amount in box 5. (See the
2004-7 I.R.B. 478, available at IRS.gov/irb/ instructions for Box 5, later.) Use Code G in box 7. If the
2004-07_IRB#RR-2004-12, as modified by Notice 2013-74. direct rollover is made on behalf of a nonspouse designated
Designated Roth accounts. A direct rollover from a beneficiary, also enter Code 4 in box 7.
designated Roth account may only be made to another For reporting instructions for a direct rollover from a
designated Roth account or to a Roth IRA. A distribution from designated Roth account, see Designated Roth accounts,
a Roth IRA, however, cannot be rolled over into a designated earlier.
Roth account. In addition, a plan is permitted to treat the
balance of the participant's designated Roth account and the Explanation to Recipients Before Eligible
participant's other accounts under the plan as accounts held Rollover Distributions (Section 402(f) Notice)
under two separate plans for purposes of applying the
For qualified plans, section 403(b) plans, and governmental
automatic rollover rules of section 401(a)(31)(B) and Q/A-9
section 457(b) plans, the plan administrator must provide to
through Q/A-11 of Regulations section 1.401(a)(31)-1. Thus,
each recipient of an eligible rollover distribution an
if a participant's balance in the designated Roth account is
explanation using either a written paper document or an
less than $200, the plan is not required to offer a direct
electronic medium (section 402(f) notice). The explanation
rollover election or to apply the automatic rollover provisions
must be provided no more than 180 days and no fewer than
to such balance.
30 days before making an eligible rollover distribution or
A distribution from a designated Roth account that is a before the annuity starting date. However, if the recipient who
qualified distribution is tax free. A qualified distribution is a has received the section 402(f) notice affirmatively elects a
payment that is made both after age 591/2 (or after death or distribution, you will not fail to satisfy the timing requirements
disabililty) and after the 5-tax-year period that begins with the merely because you make the distribution fewer than 30 days
first day of the first tax year in which the employee makes a after you provided the notice as long as you meet the
contribution to the designated Roth account. Certain requirements of Regulations section 1.402(f)-1, Q/A-2. The
amounts, including corrective distributions, cannot be electronic section 402(f) notice must meet the requirements
qualified distributions. See Regulations section 1.402A-1. for using electronic media in Regulations section
If any portion of a distribution from a designated Roth 1.401(a)-21.
account that is not includible in gross income is to be rolled
The notice must explain the rollover rules, the special tax
over into a designated Roth account under another plan, the
treatment for certain lump-sum distributions, the direct
rollover must be accomplished by a direct rollover. Any
rollover option (and any default procedures), the mandatory
portion not includible in gross income that is distributed to the
20% withholding rules, and an explanation of how
employee, however, cannot be rolled over to another
distributions from the plan to which the rollover is made may
designated Roth account, though it can be rolled over into a
have different restrictions and tax consequences than the
Roth IRA within the 60-day period described in section
plan from which the rollover is made.
402(c)(3). In the case of a direct rollover, the distributing plan
is required to report to the recipient plan the amount of the For periodic payments that are eligible rollover
investment (basis) in the contract and the first year of the distributions, you must provide the notice before the first
5-tax-year period, or that the distribution is a qualified payment and at least once a year as long as the payments
distribution. continue. For section 403(b) plans, the payer must provide
an explanation of the direct rollover option within the time

Instructions for Forms 1099-R and 5498 (2023) -5-

period described earlier or some other reasonable period of taxable, file a separate Form 1099-R to report the taxable
time. amount. See Section 1035 exchange, earlier.
Notice 2020-62, 2020-35 I.R.B. 476, available at SIMPLE IRAs. Do not report a trustee-to-trustee transfer
IRS.gov/irb/2020-35_IRB#NOT-2020-62, contains two safe from one SIMPLE IRA to another SIMPLE IRA. However, you
harbor explanations that may be provided to recipients of must report as a taxable distribution in boxes 1 and 2a a
eligible rollover distributions from an employer plan in order trustee-to-trustee transfer from a SIMPLE IRA to an IRA that
to satisfy section 402(f). is not a SIMPLE IRA during the 2-year period beginning on
the day contributions are first deposited in the individual's
Involuntary distributions. For involuntary distributions paid SIMPLE IRA by the employer. Use Code S in box 7, if
to an IRA in a direct rollover (automatic rollover), you may appropriate.
satisfy the notification requirements of section 401(a)(31)(B)
(i) either separately or as a part of the section 402(f) notice. Transfer of an IRA to spouse. If you transfer or
The notification must be in writing and may be sent using re-designate an interest from one spouse's IRA to an IRA for
electronic media in accordance with Q/A-5 of Regulations the other spouse under a divorce or separation instrument,
section 1.402(f)-1. Also, see Notice 2005-5, Q/A-15. the transfer or re-designation, as provided under section
408(d)(6), is tax free. Do not report such a transfer on Form
Transfers 1099-R.
Generally, do not report a transfer between trustees or
issuers that involves no payment or distribution of funds to Corrective Distributions
the participant, including a trustee-to-trustee transfer from You must report on Form 1099-R corrective distributions of
one IRA to another IRA, valid transfers from one section excess deferrals, excess contributions and excess aggregate
403(b) plan in accordance with paragraphs 1 through 3 of contributions under section 401(a) plans, section 401(k) cash
Regulations section 1.403(b)-10(b), or for the purchase of or deferred arrangements, section 403(a) annuity plans,
permissive service credit under section 403(b)(13) or section section 403(b) salary reduction agreements, and salary
457(e)(17) in accordance with paragraph 4 of Regulations reduction simplified employee pensions (SARSEPs) under
section 1.403(b)-10(b) and Regulations section 1.457-10(b) section 408(k)(6). Excess contributions that are
(8). However, you must report: recharacterized under a section 401(k) plan are treated as
• Recharacterized IRA contributions; distributed. Corrective distributions must include earnings
• Roth IRA conversions; through the end of the year in which the excess arose. These
• Direct rollovers from qualified plans, section 403(b) plans, distributions are reportable on Form 1099-R and are
or governmental section 457(b) plans, including any direct generally taxable in the year of the distribution (except for
rollovers from such plans that are IRRs or are qualified excess deferrals under section 402(g)). Enter Code 8 or P in
rollover contributions described in section 408A(e); and box 7 (with Code B, if applicable) to designate the distribution
• Direct payments from IRAs to accepting employer plans. and the year it is taxable.
IRA recharacterizations. You must report each Use a separate Form 1099-R to report a corrective
recharacterization of an IRA contribution. If a participant distribution from a designated Roth account.
makes a contribution to an IRA (first IRA) for a year, the The total amount of the elective deferral is reported in
participant may choose to recharacterize the contribution by TIP box 12 of Form W-2. See the Instructions for Forms
transferring, in a trustee-to-trustee transfer, any part of the W-2 and W-3 for more information.
contribution (plus earnings) to another IRA (second IRA). The
contribution is treated as made to the second IRA For more information about reporting corrective
(recharacterization). A recharacterization may be made with distributions, see Table 1; Notice 89-32, 1989-1 C.B. 671;
the same trustee or with another trustee. The trustee of the Notice 88-33, 1988-1 C.B. 513; Notice 87-77, 1987-2 C.B.
first IRA must report the recharacterization as a distribution 385; and the regulations under sections 401(k), 401(m),
on Form 1099-R and the contribution to the first IRA and its 402(g), and 457.
character on Form 5498.
Excess deferrals. Excess deferrals under section 402(g)
Enter the fair market value (FMV) of the amount can occur in section 401(k) plans, section 403(b) plans, or
recharacterized in box 1, 0 (zero) in box 2a, and Code R in SARSEPs. If distributed by April 15 of the year following the
box 7 if reporting a recharacterization of a prior-year (2022) year of deferral, the excess is taxable to the participant in the
contribution or Code N if reporting a recharacterization of a year of deferral (other than designated Roth contributions),
contribution in the same year (2023). It is not necessary to but the earnings are taxable in the year distributed. Except
check the IRA/SEP/SIMPLE checkbox. For more information for a SARSEP, if the distribution occurs after April 15, the
on how to report, see Notice 2000-30 on page 1266 of IRB excess is taxable in the year of deferral and the year
2000-25 at IRS.gov/pub/irs-irbs/irb00-25.pdf. distributed. The earnings are taxable in the year distributed.
No recharacterizations of conversions made in 2018 or For a SARSEP, excess deferrals not withdrawn by April 15
later. A conversion of a traditional IRA to a Roth IRA, and a are considered regular IRA contributions subject to the IRA
rollover from any other eligible retirement plan to a Roth IRA, contribution limits. Corrective distributions of excess
made in the participant’s tax years beginning after December deferrals are not subject to federal income tax withholding or
31, 2017, cannot be recharacterized as having been made to social security and Medicare taxes. For losses on excess
a traditional IRA. deferrals, see Losses, later. See Regulations section
1.457-4(e) for special rules relating to excess deferrals under
Section 1035 exchange. You may have to report
governmental section 457(b) plans.
exchanges of insurance contracts, including an exchange
under section 1035, under which any designated distribution Excess contributions. Excess contributions can occur in a
may be made. For a section 1035 exchange that is in part section 401(k) plan or a SARSEP. All distributions of the
excess contributions plus earnings (other than designated

-6- Instructions for Forms 1099-R and 5498 (2023)

Roth contributions), including recharacterized excess earnings attributable to the employee contributions (or
contributions, are taxable to the participant in the year of designated Roth contributions) being returned in box 2a, and
distribution. Report the gross distribution in box 1 of Form the employee contributions (or designated Roth
1099-R. In box 2a, enter the excess contribution and contributions) being returned in box 5. Enter Code E in box 7.
earnings distributed less any designated Roth contributions. For more information, see Rev. Proc. 92-93, 1992-2 C.B.
For a SARSEP, the employer must notify the participant by 505.
March 15 of the year after the year the excess contribution
was made that the participant must withdraw the excess and Similar rules apply to other corrective distributions under
earnings. All distributions from a SARSEP are taxable in the EPCRS. Also, special Form 1099-R reporting is available for
year of distribution. An excess contribution not withdrawn by certain plan loan failures. See section 6.07 of Rev. Proc.
April 15 of the year after the year of notification is considered 2021-30 for details.
a regular IRA contribution subject to the IRA contribution If excess employer contributions (other than elective
limits. deferrals), and the earnings on them, under SEP, SARSEP,
Regulations have not been updated for SARSEPs. or SIMPLE IRA plans are returned to an employer (with the
participant's consent), enter the gross distribution (excess
!
CAUTION
and earnings) in box 1 and 0 (zero) in box 2a. Enter Code E
in box 7.
Excess aggregate contributions. Excess aggregate
contributions under section 401(m) can occur in section Failing the ADP or ACP Test After a Total
401(a), section 401(k), section 403(a), and section 403(b) Distribution
plans. A corrective distribution of excess aggregate
If you make a total distribution in 2023 and file a Form 1099-R
contributions plus earnings is taxable to the participant in the
with the IRS and then discover in 2024 that the plan failed
year the distribution was made. Report the gross distribution
either the section 401(k)(3) actual deferral percentage (ADP)
in box 1 of Form 1099-R. In box 2a, enter the excess and
test for 2023 and you compute excess contributions or the
earnings distributed less any after-tax contributions.
section 401(m)(2) actual contribution percentage (ACP) test
Losses. If a corrective distribution of an excess deferral is and you compute excess aggregate contributions, you must
made in a year after the year of deferral and a net loss has recharacterize part of the total distribution as excess
been allocated to the excess deferral, report the corrective contributions or excess aggregate contributions. First, file a
distribution amount in boxes 1 and 2a of Form 1099-R for the CORRECTED Form 1099-R for 2023 for the correct amount
year of the distribution with the appropriate distribution code of the total distribution (not including the amount
in box 7. If the excess deferrals consist of designated Roth recharacterized as excess contributions or excess aggregate
contributions, report the corrective distribution amount in contributions). Second, file a new Form 1099-R for 2023 for
box 1, 0 (zero) in box 2a, and the appropriate distribution the excess contributions or excess aggregate contributions
code in box 7. However, taxpayers must include the total and allocable earnings.
amount of the excess deferral (unadjusted for loss) in income
in the year of deferral, and they may report a loss on the tax To avoid a late filing penalty if the new Form 1099-R is
return for the year the corrective distribution is made. filed after the due date, enter in the bottom margin of Form
1096, Annual Summary and Transmittal of U.S. Information
Distributions Under Employee Plans Returns, the words “Filed To Correct Excess Contributions.”
Compliance Resolution System (EPCRS) You must also issue copies of the Forms 1099-R to the
The procedure for correcting excess annual additions under plan participant with an explanation of why these new forms
section 415 is explained in the latest EPCRS revenue are being issued. ADP and ACP test corrective distributions
procedure in section 6.06 of Rev. Proc. 2021-30, 2021-31 are exempt from the 10% additional tax under section 72(t).
I.R.B. 172, available at IRS.gov/irb/2021-31_IRB#REV-
PROC-2021-30. Loans Treated as Distributions
A loan from a qualified plan under section 401(a) or 403(a),
Distributions to correct a section 415 failure are not from a section 403(b) plan, or from a plan, whether or not
eligible rollover distributions although they are subject to qualified, that is maintained by the United States, a state or
federal income tax withholding under section 3405. They are political subdivision thereof, or any agency or instrumentality
not subject to social security, Medicare, or Federal thereof, made to a participant or beneficiary is not treated as
Unemployment Tax Act (FUTA) taxes. In addition, such a distribution from the plan if the loan satisfies the following
distributions are not subject to the 10% additional tax under requirements.
section 72(t).
1. The loan is evidenced by an enforceable agreement.
You may report the distribution of elective deferrals (other
2. The agreement specifies that the loan must be repaid
than designated Roth contributions) and employee
within 5 years, except for a principal residence.
contributions (and earnings attributable to such elective
deferrals and employee contributions) on the same Form 3. The loan must be repaid in substantially level
1099-R. However, if you made other distributions during the installments (at least quarterly).
year, report them on a separate Form 1099-R. Because the 4. The loan amount does not exceed the limits in section
distribution of elective deferrals (other than designated Roth 72(p)(2)(A) (maximum limit is equal to the lesser of 50% of
contributions) is fully taxable in the year distributed (no part of the vested account balance or $50,000).
the distribution is a return of the investment in the contract),
report the total amount of the distribution in boxes 1 and 2a. Certain exceptions, cure periods, and suspension of the
Leave box 5 blank, and enter Code E in box 7. For a return of repayment schedule may apply.
employee contributions (or designated Roth contributions)
plus earnings, enter the gross distribution in box 1, the

Instructions for Forms 1099-R and 5498 (2023) -7-

 The loan agreement must specify the amount of the loan, • The distribution is not subject to the 10% additional tax
the term of the loan, and the repayment schedule. The under section 72(t), indicated by reporting Code 2 in box 7;
agreement may include more than one document. and
If a loan fails to satisfy (1), (2), or (3), the balance of the
• The distribution must be elected by the employee no later
than 90 days after the first default elective contribution under
loan is a deemed distribution. The distribution may occur at the EACA, as specified in Regulations section 1.414(w)-1(c)
the time the loan is made or later if the loan is not repaid in (2).
accordance with the repayment schedule.
If the distribution is from a designated Roth account, enter
If a loan fails to satisfy (4) at the time the loan is made, the Code B as well as Code 2 in box 7.
amount that exceeds the amount permitted to be loaned is a
deemed distribution. Corrected Form 1099-R
Deemed distribution. If a loan is treated as a deemed If you filed a Form 1099-R with the IRS and later discover that
distribution, it is reportable on Form 1099-R using the normal there is an error on it, you must correct it as soon as possible.
taxation rules of section 72, including tax basis rules. The For example, if you transmit a direct rollover and file a Form
distribution may also be subject to the 10% additional tax 1099-R with the IRS reporting that none of the direct rollover
under section 72(t). It is not eligible to be rolled over to an is taxable by entering 0 (zero) in box 2a, and you then
eligible retirement plan nor is it eligible for the 10-year tax discover that part of the direct rollover consists of RMDs
option. On Form 1099-R, complete the appropriate boxes, under section 401(a)(9), you must file a corrected Form
including boxes 1 and 2a, and enter Code L in box 7. Also, 1099-R reporting the eligible rollover distribution as the direct
enter Code 1 or Code B, if applicable. rollover and file a new Form 1099-R reporting the RMD as if it
Interest that accrues after the deemed distribution of a had been distributed to the participant. See part H in the
loan is not an additional loan and, therefore, is not reportable 2023 General Instructions for Certain Information Returns, or
on Form 1099-R. Pub. 1220, if filing electronically.
Loans that are treated as deemed distributions or that are If you filed a Form 1099-R with the IRS reporting a
actual distributions are subject to federal income tax payment of reportable death benefits, you must file a
withholding. If such a distribution occurs after the loan is corrected return within 15 calendar days of recovering any
made, you must withhold only if you distributed cash or portion of the reportable death benefits from the reportable
property (other than employer securities) at the time of the death benefits payment recipient as a result of the rescission
deemed or actual distribution. See section 72(p), section of the reportable policy sale.
72(e)(4)(A), and Regulations section 1.72(p)-1.
If you furnished a statement to the reportable death
Subsequent repayments. If a participant makes any cash benefits payment recipient, you must furnish the recipient
repayments on a loan that was reported on Form 1099-R as with a corrected statement within 15 calendar days of
a deemed distribution, the repayments increase the recovering any portion of the reportable death benefits from
participant's tax basis in the plan as if the repayments were the reportable death benefits payment recipient as a result of
after-tax contributions. However, such repayments are not the rescission of the reportable policy sale.
treated as after-tax contributions for purposes of section
401(m) or 415(c)(2)(B). Filer
For a deemed distribution that was reported on Form The payer, trustee, or plan administrator must file Form
1099-R but was not repaid, the deemed distribution does not 1099-R using the same name and employer identification
increase the participant's basis. number (EIN) used to deposit any tax withheld and to file
Plan loan offsets. If a participant's accrued benefit is Form 945, Annual Return of Withheld Federal
reduced (offset) to repay a loan, the amount of the account Income Tax.
balance that is offset against the loan is an actual distribution.
Report it as you would any other actual distribution. Do not
Beneficiaries
enter Code L in box 7. If you make a distribution to a beneficiary, trust, or estate,
prepare Form 1099-R using the name and TIN of the
A qualified plan loan offset is a type of plan loan offset that
beneficiary, trust, or estate, not that of the decedent. If there
meets certain requirements. In order to be a qualified plan
are multiple beneficiaries, report on each Form 1099-R only
loan offset, the loan, at the time of the offset, must be a loan
the amount paid to the beneficiary whose name appears on
in good standing and the offset must be solely by reason of
the Form 1099-R, and enter the percentage in box 9a, if
(1) the termination of the qualified employer plan, or (2) the
applicable.
failure to meet the repayment terms because the employee
had a severance from employment. Report a qualified plan Disclaimers. A beneficiary may make a qualified disclaimer
loan offset as you would any other actual distribution. In of all or some of an IRA account balance if the disclaimed
addition, enter Code M in box 7. amount and income are paid to a new beneficiary or
segregated in a separate account. A qualified disclaimer may
Permissible Withdrawals Under Section 414(w) be made after the beneficiary has previously received the
For permissible withdrawals from an eligible automatic RMD for the year of the decedent's death. For more
contribution arrangement (EACA) under section 414(w): information, see Rev. Rul. 2005-36, 2005-26 I.R.B. 1368,
• The distribution (except to the extent the distribution available at IRS.gov/irb/2005-26_IRB#RR-2005-36.
consists of designated Roth contributions) is included in the
employee's gross income in the year distributed; Alternate Payee Under a QDRO
• Report principal and earnings in boxes 1 and 2a except, in Distributions to an alternate payee who is a spouse or former
the case of a distribution from a designated Roth account, spouse of the employee under a QDRO are reportable on
report only earnings in box 2a; Form 1099-R using the name and TIN of the alternate payee.

-8- Instructions for Forms 1099-R and 5498 (2023)

If the alternate payee under a QDRO is a nonspouse, enter recharacterized IRA contributions, Roth IRA conversions,
the name and TIN of the employee. However, this rule does and premiums paid by a trustee or custodian for the cost of
not apply to IRAs; see Transfer of an IRA to spouse, earlier. current life or other insurance protection. Also, include in this
box distributions to plan participants from governmental
Nonresident Aliens section 457(b) plans. However, in the case of a distribution
If income tax is withheld under section 3405 on any by a trust representing certificates of deposit (CDs)
distribution to a nonresident alien, report the distribution and redeemed early, report the net amount distributed. Also, see
withholding on Form 1099-R. Also, file Form 945 to report the Box 6, later.
withholding. See the presumption rules in part S of the 2023 For a distribution from a traditional IRA of assets that do
General Instructions for Certain Information Returns. not have a readily available FMV, enter Code K in box 7.
However, any payments to a nonresident alien from any Include in this box the value of U.S. Savings Bonds
trust under section 401(a); any annuity plan under section distributed from a plan. Enter the appropriate taxable amount
403(a); any annuity, custodial account, or retirement income in box 2a. Furnish a statement to the plan participant showing
account under section 403(b); or any IRA account under the value of each bond at the time of distribution. This will
section 408(a) or (b) are subject to withholding under section provide him or her with the information necessary to figure
1441, unless there is an exception under a tax treaty. Report the interest income on each bond when it is redeemed.
the distribution and withholding on Form 1042, Annual
Withholding Tax Return for U.S. Source Income of Foreign Include in box 1 amounts distributed from a qualified
Persons, and Form 1042-S, Foreign Person's U.S. Source retirement plan for which the recipient elects to pay health
Income Subject to Withholding. insurance premiums under a cafeteria plan or that are paid
directly to reimburse medical care expenses incurred by the
For guidance regarding covered expatriates, see Notice recipient (see Rev. Rul. 2003-62 on page 1034 of IRB
2009-85, 2009-45 I.R.B. 598, available at IRS.gov/irb/ 2003-25 at IRS.gov/pub/irs-irbs/irb03-25.pdf). Also, include
2009-45_IRB#NOT-2009-85. this amount in box 2a.
Include in box 1 charges or payments for qualified
Statements to Recipients long-term care insurance contracts under combined
If you are required to file Form 1099-R, you must furnish a arrangements. Enter Code W in box 7.
statement to the recipient. For more information about the
requirement to furnish a statement to each recipient, see part In addition to reporting distributions to beneficiaries of
M in the 2023 General Instructions for Certain Information deceased employees, report here any death benefit
Returns. payments made by employers that are not made as part of a
pension, profit-sharing, or retirement plan. Also, enter these
Truncating recipient's TIN on payee statements. amounts in box 2a; enter Code 4 in box 7.
Pursuant to Regulations section 301.6109-4, all filers of Form
1099-R may truncate a recipient’s TIN (social security Do not report accelerated death benefits on Form
number (SSN), individual taxpayer identification number ! 1099-R. Report them on Form 1099-LTC, Long-Term
(ITIN), adoption taxpayer identification number (ATIN), or CAUTION Care and Accelerated Death Benefits.
employer identification number (EIN)) on payee statements.
Truncation is not allowed on any documents the filer files with Include in box 1 the amount of any payment of reportable
the IRS. A payer's TIN may not be truncated on any form. death benefits.
See part J in the 2023 General Instructions for Certain For section 1035 exchanges that are reportable on Form
Information Returns for more information. 1099-R, enter the total value of the contract in box 1, 0 (zero)
Do not enter a negative amount in any box on Form in box 2a, the total premiums paid in box 5, and Code 6 in
box 7.
TIP 1099-R.
Designated Roth account distributions. If you are making
a distribution from a designated Roth account, enter the
Account Number gross distribution in box 1, the taxable portion of the
The account number is required if you have multiple distribution in box 2a, the basis included in the distributed
accounts for a recipient for whom you are filing more than amount in box 5, any amount allocable to an IRR made within
one Form 1099-R. the previous 5 years (unless an exception to section 72(t)
applies) in box 10, and the first year of the 5-tax-year period
The account number is also required if you check the for determining qualified distributions in box 11. Also, enter
“FATCA filing requirement” box. See Box 12, later. the applicable code(s) in box 7.
Additionally, the IRS encourages you to designate an Employer securities and other property. If you distribute
account number for all Forms 1099-R that you file. See part L employer securities or other property, include in box 1 the
in the 2023 General Instructions for Certain Information FMV of the securities or other property on the date of
Returns. distribution. If there is a loss, see Losses, later.
The policy number of the life insurance contract under If you are distributing worthless property only, you are not
which benefits are paid is required if you are reporting a required to file Form 1099-R. However, you may file and
payment of reportable death benefits. enter 0 (zero) in boxes 1 and 2a and any after-tax employee
contributions or designated Roth contributions in box 5.
Box 1. Gross Distribution Charitable gift annuities. If cash or capital gain property is
Enter the total amount of the distribution before income tax or donated in exchange for a charitable gift annuity, report the
other deductions were withheld. Include direct rollovers, IRA total amount distributed during the year in box 1. See
direct payments to accepting employer plans, Charitable gift annuities under Box 3, later.

Instructions for Forms 1099-R and 5498 (2023) -9-

FFIs reporting in a manner similar to section 6047(d). If Corrective distributions. Enter in box 2a the amount of
you are a participating FFI electing to report with respect to a excess deferrals, excess contributions, or excess aggregate
cash value insurance contract or annuity contract that is a contributions (other than employee contributions or
U.S. account held by a specified U.S. person in a manner designated Roth contributions). See Corrective Distributions,
similar to section 6047(d), include in box 1 any amount paid earlier.
under the contract during the reporting period (that is, the
Cost of current life insurance protection. Include current
calendar year or the year ending on the most recent contract
life insurance protection costs (net premium costs) that were
anniversary date).
reported in box 1. However, do not report these costs and a
Do not report the account balance or value (as of the distribution on the same Form 1099-R. Use a separate Form
! end of the reporting period) in box 1. Participating 1099-R for each. For the cost of current life insurance
CAUTION FFIs reporting in a manner similar to section 6047(d) protection, enter Code 9 in box 7.
should check the Recent Developments section for Form
DVECs. Include DVEC distributions in this box. Also, see
1099-R at IRS.gov/Form1099R before filing for 2023.
Deductible Voluntary Employee Contributions (DVECs),
earlier.
Box 2a. Taxable Amount
Designated Roth account. Generally, a distribution from a
When determining the taxable amount to be entered designated Roth account that is not a qualified distribution is
! in box 2a, do not reduce the taxable amount by any taxable to the recipient under section 402 in the case of a
CAUTION portion of the $3,000 exclusion for which the plan qualified under section 401(a), under section 403(b)(1)
participant may be eligible as a payment of qualified health in the case of a section 403(b) plan, and under section
and long-term care insurance premiums for retired public 457(a)(1)(A) in the case of a governmental section 457(b)
safety officers under section 402(l). plan. For purposes of section 72, designated Roth
Generally, you must enter the taxable amount in box 2a. contributions are treated as employer contributions, as
However, if you are unable to reasonably obtain the data described in section 72(f)(1) (that is, as includible in the
needed to compute the taxable amount, leave this box blank. participant's gross income).
Except as provided under Box 6, later, do not enter Examples. Participant A received a nonqualified
excludable or tax-deferred amounts reportable in boxes 5, 6, distribution of $5,000 from the participant's designated Roth
and 8. Enter 0 (zero) in box 2a for: account. Immediately before the distribution, the participant's
• A direct rollover (other than an IRR) from a qualified plan, a account balance was $10,000, consisting of $9,400 of
section 403(b) plan, or a governmental section 457(b) plan to designated Roth contributions and $600 of earnings. The
another such plan or to a traditional IRA; taxable amount of the $5,000 distribution is $300
• A direct rollover from a designated Roth account to a Roth ($600/$10,000 x $5,000). The nontaxable portion of the
IRA; distribution is $4,700 ($9,400/$10,000 x $5,000). The issuer
• An amount from a traditional, SEP, or SIMPLE IRA directly would report on Form 1099-R:
transferred to an accepting employer plan; • Box 1, $5,000 as the gross distribution;
• An IRA recharacterization; • Box 2a, $300 as the taxable amount;
• A nontaxable section 1035 exchange of life insurance, • Box 4, $60 ($300 x 20% (0.20) as the withholding on the
annuity, endowment, or long-term care insurance contracts; earnings portion of the distribution;
or • Box 5, $4,700 as the designated Roth contribution basis
• A nontaxable charge or payment, for the purchase of a (nontaxable amount);
qualified long-term care insurance contract, against the cash • Box 7, Code B; and
value of an annuity contract or the cash surrender value of a • The first year of the 5-tax-year period in box 11.
life insurance contract. Using the same facts as in the example above, except that
the distribution was a direct rollover to a Roth IRA, the issuer
Annuity starting date in 1998 or later. If you made annuity
would report on Form 1099-R:
payments from a qualified plan under section 401(a), 403(a),
or 403(b) and the annuity starting date is in 1998 or later, you • Box 1, $5,000 as the gross distribution;
must use the simplified method under section 72(d)(1) to • Box 2a, 0 (zero) as the taxable amount;
figure the taxable amount. Under this method, the expected • Box 4, no entry;
number of payments you use to figure the taxable amount • Box 5, $4,700 as the designated Roth contribution basis
(nontaxable amount);
depends on whether the payments are based on the life of
one or more than one person. See Notice 98-2, 1998-1 C.B. • Box 7, Code H; and
266, and Pub. 575, Pension and Annuity Income, to help you • The first year of the 5-tax-year period in box 11.
figure the taxable amount to enter in box 2a. Losses. If a distribution is a loss, do not enter a negative
amount in this box. For example, if an employee's 401(k)
Annuity starting date after November 18, 1996, and be-
account balance, consisting solely of stock, is distributed but
fore 1998. Under the simplified method for figuring the
the value is less than the employee's remaining after-tax
taxable amount, the expected number of payments is based
contributions or designated Roth contributions, enter the
only on the primary annuitant's age on the annuity starting
value of the stock in box 1, leave box 2a blank, and enter the
date. See Notice 98-2.
employee's contributions or designated Roth contributions in
Annuity starting date before November 19, 1996. If you box 5.
properly used the rules in effect before November 19, 1996, For a plan with no after-tax contributions or designated
for annuities that started before that date, continue to report Roth contributions, even though the value of the account may
using those rules. No changes are necessary. have decreased, there is no loss for reporting purposes.
Therefore, if there are no employer securities distributed,
show the actual cash and/or FMV of property distributed in

-10- Instructions for Forms 1099-R and 5498 (2023)

boxes 1 and 2a, and make no entry in box 5. If only employer SIMPLE IRA paid directly to an accepting employer plan after
securities are distributed, show the FMV of the securities in the first 2 years of plan participation, enter the gross amount
boxes 1 and 2a and make no entry in box 5 or 6. If both in box 1, 0 (zero) in box 2a, and Code G in box 7.
employer securities and cash or other property are
distributed, show the actual cash and/or FMV of the property Box 2b. Taxable Amount Not Determined
(including employer securities) distributed in box 1, the gross Enter an “X” in this box if you are unable to reasonably obtain
less any NUA on employer securities in box 2a (except as the data needed to compute the taxable amount.
provided under Box 6, later), no entry in box 5, and any NUA
in box 6. In addition, enter an “X” in this box if you are an FFI
reporting in box 1 to satisfy your chapter 4 reporting
Roth IRA. For a distribution from a Roth IRA, report the total requirement under the election described in Regulations
distribution in box 1 and leave box 2a blank except in the section 1.1471-4(d)(5)(i)(B).
case of an IRA revocation or account closure and a
recharacterization, earlier. Use Code J, Q, or T as If you check this box, leave box 2a blank; but see
appropriate in box 7. Use Code 8 or P, if applicable, in box 7 Traditional, SEP, or SIMPLE IRA, earlier. Except for IRAs,
with Code J. Do not combine Code Q or T with any other make every effort to compute the taxable amount.
codes.
Box 2b. Total Distribution
However, for the distribution of excess Roth IRA
contributions, report the gross distribution in box 1 and only Enter an “X” in this box only if the payment shown in box 1 is
the earnings in box 2a. Enter Code J and Code 8 or P in a total distribution. A total distribution is one or more
box 7. distributions within 1 tax year in which the entire balance of
the account is distributed. If periodic or installment payments
Roth IRA conversions. Report the total amount converted are made, mark this box in the year the final payment is
from a traditional IRA, SEP IRA, or SIMPLE IRA to a Roth made.
IRA in box 2a. Check the “Taxable amount not determined”
box in box 2b. A conversion is considered a distribution and Box 3. Capital Gain (Included in Box 2a)
must be reported even if it is with the same trustee and even If any amount is taxable as a capital gain, report it in box 3.
if the conversion is done by a trustee-to-trustee transfer.
When an individual retirement annuity described in section Charitable gift annuities. Report in box 3 any amount from
408(b) is converted to a Roth IRA, the amount that is treated a charitable gift annuity that is taxable as a capital gain.
as distributed is the FMV of the annuity contract on the date Report in box 1 the total amount distributed during the year.
the annuity contract is converted. This rule also applies when Report in box 2a the taxable amount. Advise the annuity
a traditional IRA holds an annuity contract as an account recipient of any amount in box 3 subject to the 28% rate gain
asset and the traditional IRA is converted to a Roth IRA. for collectibles and any unrecaptured section 1250 gain.
Determining the FMV of an individual retirement annuity Report in box 5 any nontaxable amount. Enter Code F in
issued by a company regularly engaged in the selling of box 7. See Regulations section 1.1011-2(c), Example 8.
contracts depends on the timing of the conversion as Special rule for participants born before January 2,
outlined in Q/A-14 of Regulations section 1.408A-4. 1936 (or their beneficiaries). For lump-sum distributions
For a Roth IRA conversion, use Code 2 in box 7 if the from qualified plans only, enter the amount in box 2a eligible
participant is under age 591/2 or Code 7 if the participant is at for the capital gain election under section 1122(h)(3) of the
least age 591/2. Also, check the IRA/SEP/SIMPLE checkbox Tax Reform Act of 1986 and section 641(f)(3) of the
in box 7. Economic Growth and Tax Relief Reconciliation Act of 2001.
Enter the full amount eligible for the capital gain election. You
Traditional, SEP, or SIMPLE IRA. Generally, you are not
should not complete this box for a direct rollover.
required to compute the taxable amount of a traditional, SEP,
or SIMPLE IRA or designate whether any part of a To compute the months of an employee's active
distribution is a return of basis attributable to nondeductible participation before 1974, count as 12 months any part of a
contributions. Therefore, except as provided below or calendar year in which an employee actively participated
elsewhere in these instructions, report the total amount under the plan; for active participation after 1973, count as 1
distributed from a traditional, SEP, or SIMPLE IRA in box 2a. month any part of a month in which the employee actively
This will be the same amount reported in box 1. Check the participated under the plan. See the Example, later.
“Taxable amount not determined” box in box 2b. Active participation begins with the first month in which an
• For a distribution by a trust representing CDs redeemed employee became a participant under the plan and ends with
early, report the net amount distributed. Do not include any the earliest of:
amount paid for IRA insurance protection in this box. • The month in which the employee received a lump-sum
• For a distribution of contributions plus earnings from an distribution under the plan;
IRA before the due date of the return under section 408(d) • For an employee, other than a self-employed person or
(4), report the gross distribution in box 1, only the earnings in owner-employee, the month in which the employee
box 2a, and enter Code 8 or P, whichever is applicable, in separates from service;
box 7. Also, enter Code 1 or 4, if applicable. • The month in which the employee dies; or
• For a distribution of excess contributions without earnings • For a self-employed person or owner-employee, the first
after the due date of the individual's return under section month in which the employee becomes disabled within the
408(d)(5), leave box 2a blank, and check the “Taxable meaning of section 72(m)(7).
amount not determined” box in box 2b. Use Code 1 or 7 in
Example.
box 7 depending on the age of the participant.
• For an amount in a traditional IRA or a SEP IRA paid
directly to an accepting employer plan, or an amount in a

Instructions for Forms 1099-R and 5498 (2023) -11-

 Method for Computing Amount Eligible for recipient cannot claim exemption from the 20% withholding
Capital Gain Election (See Box 3, earlier.) but may ask to have additional amounts withheld on Form
W-4P, Withholding Certificate for Pension or Annuity
Step 1. Total Taxable Amount
Payments. If the recipient is not asking that additional
amounts be withheld, Form W-4P is not required for an
A. Total distribution XXXXX
eligible rollover distribution because 20% withholding is
B. Less:
mandatory.
1. Current actuarial value of any annuity XXXX
2. Employee contributions or designated Roth Employer securities and plan loan offset amounts that are
contributions (minus any amounts previously part of an eligible rollover distribution must be included in the
distributed that were not includible in the amount multiplied by 20% (0.20). However, the actual
employee's gross income) XXXX amount to be withheld cannot be more than the sum of the
3. Net unrealized appreciation in the value of any cash and the FMV of property (excluding employer securities
employer securities that was a part of the and plan loan offset amounts). For example, if the only part of
lump-sum distribution XXXX an eligible rollover distribution that is not a direct rollover is
C. Total of lines 1 through 3 XXXXX employer securities or a plan loan offset amount, no
withholding is required. However, unless otherwise exempt,
D. Total taxable amount. Subtract line C from line XXXXX
A.
any cash that is paid in the distribution must be used to
satisfy the withholding on the employer securities or plan
Step 2. Capital Gain
loan offset amount.
Depending on the type of plan or arrangement, the payer
or, in some cases, the plan administrator is required to
withhold 20% of eligible rollover distributions from a qualified
Total taxable Months of active plan's distributed annuity and on eligible rollover distributions
amount participation before 1974 from a governmental section 457(b) plan. For additional
line D X ____________________ = Capital gain information, see section 3405(d) and Regulations sections
Total months of active 35.3405-1T, Q/A A-13, and 31.3405(c)-1, Q/A-4 and -5. For
participation governmental section 457(b) plans only, see Notice 2003-20
on page 894 of IRB 2003-19.
Any NUA excludable from gross income under section
Box 4. Federal Income Tax Withheld 402(e)(4) is not included in the amount of any eligible rollover
distribution that is subject to 20% withholding.
Enter any federal income tax withheld. This withholding
under section 3405 is subject to deposit rules and the You are not required to withhold 20% of an eligible rollover
withholding tax return is Form 945. Backup withholding does distribution that, when aggregated with other eligible rollover
not apply. See Pub. 15-A, Employer's Supplemental Tax distributions made to one person during the year, is less than
Guide, and the Instructions for Form 945 for more $200.
withholding information. IRAs. The 20% withholding does not apply to distributions
Even though you may be using Code 1 in box 7 to from any IRA, but withholding does apply to IRAs under the
designate an early distribution subject to the 10% additional rules for periodic payments and nonperiodic distributions. For
tax specified in section 72(q), (t), or (v), you are not required withholding, assume that the entire amount of a distribution
to withhold that tax. from an IRA other than a Roth IRA is taxable (except for the
distribution of contributions under section 408(d)(4), in which
The amount withheld cannot be more than the sum of only the earnings are taxable, and section 408(d)(5), as
TIP the cash and the FMV of property (excluding applicable). Generally, Roth IRA distributions are not subject
employer securities) received in the distribution. If a to withholding except on the earnings portion of excess
distribution consists solely of employer securities and cash contributions distributed under section 408(d)(4).
($200 or less) in lieu of fractional shares, no withholding is
An IRA recharacterization is not subject to income tax
required.
withholding.
To determine your withholding requirements for any Periodic payments. For periodic payments that are not
designated distribution under section 3405, you must first eligible rollover distributions, withhold on the taxable part as
determine whether the distribution is an eligible rollover though the periodic payments were wages, based on the
distribution. See Direct Rollovers, earlier, for a discussion of recipient's Form W-4P. The recipient may request additional
eligible rollover distributions. If the distribution is not an withholding on Form W-4P or claim exemption from
eligible rollover distribution, the rules for periodic payments withholding. If a recipient does not submit a Form W-4P,
or nonperiodic distributions apply. For purposes of withhold by treating the recipient as single with no
withholding, distributions from any IRA are not eligible adjustments. See Regulations section 35.3405-1T, Q/A A-9,
rollover distributions. for a definition of periodic payments. See Pub. 15-A for
additional information regarding withholding on periodic
Eligible rollover distribution; 20% withholding. If an
payments and Pub. 15-T for applicable tables used to
eligible rollover distribution is paid directly to an eligible
determine withholding on periodic payments.
retirement plan in a direct rollover, do not withhold federal
income tax. If any part of an eligible rollover distribution is not Rather than Form W-4P, military retirees should give
a direct rollover, you must withhold 20% of the part that is TIP you Form W-4, Employee's Withholding Certificate.
paid to the recipient and includible in gross income. This
includes the earnings portion of any nonqualified designated
Roth account distribution that is not directly rolled over. The

-12- Instructions for Forms 1099-R and 5498 (2023)

Nonperiodic distributions. Withhold 10% of the taxable For payments of reportable death benefits, enter your
part of a nonperiodic distribution that is not an eligible rollover estimate of the buyer’s investment in the contract in box 5.
distribution. In most cases, designated distributions from any If you are unable to reasonably obtain the data necessary
IRA are treated as nonperiodic distributions subject to to compute the taxable amount, leave box 2a blank, leave
withholding at the 10% rate even if the distributions are paid box 5 blank (except in the case of a payment of reportable
over a periodic basis. See Regulations section 35.3405-1T, death benefits), and check the first box in box 2b. In the case
Q/A F-15. The recipient may request additional withholding of a payment of reportable death benefits, box 5 must be
on Form W-4R or claim exemption from withholding. For completed.
more information on nonperiodic distributions and
withholding, see Regulations section 35-3405-1T, Q/A A-12, For more information, see Rev. Proc. 92-86, 1992-2 C.B.
and parts C, D, and F. 495, and section 72(d).
Failure to provide TIN. For periodic payments and For reporting charitable gift annuities, see Charitable gift
nonperiodic distributions, if a payee fails to furnish his or her annuities, earlier.
correct TIN to you in the manner required, or if the IRS
notifies you before any distribution that the TIN furnished is Box 6. Net Unrealized Appreciation (NUA) in
incorrect, a payee cannot claim exemption from withholding.
Employer's Securities
For periodic payments, withhold as if the payee was single
claiming no withholding allowances. For nonperiodic Use this box if a distribution from a qualified plan (except a
payments, withhold 10%. Backup withholding does not qualified distribution from a designated Roth account)
apply. includes securities of the employer corporation (or a
subsidiary or parent corporation) and you can compute the
Box 5. Employee Contributions/Designated NUA in the employer's securities. Enter all the NUA in
Roth Contributions or Insurance Premiums employer securities if this is a lump-sum distribution. If this is
not a lump-sum distribution, enter only the NUA in employer
Enter the employee's contributions, designated Roth securities attributable to employee contributions. See
contributions, or insurance premiums that the employee may Regulations section 1.402(a)-1(b) for the determination of the
recover tax free this year (even if they exceed the box 1 NUA. Also, see Notice 89-25, Q/A-1, 1989-1 C.B. 662.
amount). The entry in box 5 may include any of the following: Include the NUA in box 1 but not in box 2a except in the case
(a) designated Roth contributions or contributions actually of a direct rollover to a Roth IRA or a designated Roth
made on behalf of the employee over the years under the account in the same plan (see Notice 2009-75, Q/A-1, and
plan that were required to be included in the income of the Notice 2010-84, Q/A-7). You do not have to complete this
employee when contributed (after-tax contributions), (b) box for a direct rollover.
contributions made by the employer but considered to have
been contributed by the employee under section 72(f), (c) the Box 7. Distribution Code(s)
accumulated cost of premiums paid for life insurance
Enter an “X” in the IRA/SEP/SIMPLE checkbox if the
protection taxable to the employee in previous years and in
distribution is from a traditional IRA, SEP IRA, or SIMPLE
the current year under Regulations section 1.72-16 (cost of
IRA. Do not check the box for a distribution from a Roth IRA
current life insurance protection) (only if the life insurance
or for an IRA recharacterization.
contract itself is distributed), and (d) premiums paid on
commercial annuities. Do not include any DVECs, any Enter the appropriate code(s) in box 7. Use Table 1 to
elective deferrals, or any contribution to a retirement plan that determine the appropriate code(s) to enter in box 7 for any
was not an after-tax contribution. amounts reported on Form 1099-R. Read the codes carefully
and enter them accurately because the IRS uses the codes
Generally, for qualified plans, section 403(b) plans, and to help determine whether the recipient has properly reported
nonqualified commercial annuities, enter in box 5 the the distribution. If the codes you enter are incorrect, the IRS
employee contributions or insurance premiums recovered tax may improperly propose changes to the recipient's taxes.
free during the year based on the method you used to When applicable, enter a numeric and an alpha code. For
determine the taxable amount to be entered in box 2a. On a example, when using Code P for a traditional IRA distribution
separate Form 1099-R, include the portion of the employee's under section 408(d)(4), you must also enter Code 1, if it
basis that has been distributed from a designated Roth applies. For a normal distribution from a qualified plan that
account. See the Examples in the instructions for box 2a, qualifies for the 10-year tax option, enter Codes 7 and A. For
earlier. a direct rollover to an IRA or a qualified plan for the surviving
If periodic payments began before 1993, you are not spouse of a deceased participant, or on behalf of a
required to, but you are encouraged to, report in box 5. nonspouse designated beneficiary, enter Codes 4 and G
(Codes 4 and H if from a designated Roth account to a Roth
If you made periodic payments from a qualified plan IRA). If two or more distribution codes are not valid
! and the annuity starting date is after November 18, combinations, you must file more than one Form 1099-R.
CAUTION 1996, you must use the simplified method to figure

the tax-free amount each year. See Annuity starting date in Enter a maximum of two alphanumeric codes in
1998 or later, earlier. ! box 7. See Table 1 for allowable combinations. Only
CAUTION three numeric combinations are permitted on one

Form 1099-R: Codes 8 and 1, 8 and 2, or 8 and 4. If two or

If a total distribution is made, the total employee more other numeric codes are applicable, you must file more
contributions or insurance premiums available to be than one Form 1099-R. For example, if part of a distribution is
recovered tax free must be shown only in box 5. If any premature (Code 1) and part is not (Code 7), file one Form
previous distributions were made, any amount recovered tax 1099-R for the part to which Code 1 applies and another
free in prior years must not appear in box 5. Form 1099-R for the part to which Code 7 applies. In

Instructions for Forms 1099-R and 5498 (2023) -13-

addition, for the distribution of excess deferrals, parts of the of the employee's contributions over the cash and other
distribution may be taxable in 2 different years. File separate property (not including the annuity contract) distributed.
Forms 1099-R using Code 8 or P to indicate the year the
If an annuity contract is part of a multiple recipient
amount is taxable.
lump-sum distribution, enter in box 8, along with the current
actuarial value, the percentage of the total annuity contract
If a qualified plan loan offset occurs in a designated
each Form 1099-R represents.
! Roth account (Codes M and B), or a loan is treated
CAUTION as a deemed distribution under section 72(p) (Codes Also, enter in box 8 the amount of the reduction in the
L and B) and a numeric code is needed to indicate whether investment (but not below 0 (zero)) against the cash value of
the recipient is subject to the 10% tax under section 72(t), an annuity contract or the cash surrender value of a life
omit Code M or Code L, as applicable. insurance contract due to charges or payments for qualified
long-term care insurance contracts.
Even if the employee/taxpayer is age 591/2 or over, use
Code 1 if a series of substantially equal periodic payments Box 9a. Your Percentage of Total Distribution
was modified within 5 years of the date of the first payment If this is a total distribution and it is made to more than one
(within the meaning of section 72(q)(3) or (t)(4)), if you have person, enter the percentage received by the person whose
been reporting distributions in previous years using Code 2. name appears on Form 1099-R. You need not complete this
For example, Mr. B began receiving payments that box for any IRA distributions or for a direct rollover.
qualified for the exception for part of a series of substantially
equal periodic payments under section 72(t)(2)(A)(iv) when Box 9b. Total Employee Contributions
he was 57. When he was 61, Mr. B modified the payments. You are not required to enter the total employee contributions
Because the payments were modified within 5 years, use or designated Roth contributions in box 9b. However,
Code 1 in the year the payments were modified, even though because this information may be helpful to the recipient, you
Mr. B is over 591/2. may choose to report them.
If you do not know that the taxpayer meets the If you choose to report the total employee contributions or
requirements for substantially equal periodic payments under designated Roth contributions, do not include any amounts
section 72(t)(2)(A)(iv), use Code 1 to report the payments. recovered tax free in prior years. For a total distribution,
For further guidance on what makes a series of report the total employee contributions or designated Roth
! substantially equal periodic payments, see Notice contributions in box 5 rather than in box 9b.
CAUTION 89-25,1989-1 C.B. 662, Q/A-12, as modified by Rev.

Rul. 2002-62. Notice 2004-15, 2004-9 I.R.B. 526, available at Box 10. Amount Allocable to IRR Within 5 Years
IRS.gov/irb/2004-09_IRB#NOT-2004-15, allows taxpayers to Enter the amount of the distribution allocable to an IRR made
use one of three methods in Notice 89-25, as modified by within the 5-year period beginning with the first day of the
Rev. Rul. 2002-62, to determine whether a distribution from a year in which the rollover was made. Do not complete this
nonqualified annuity is part of a series of substantially equal box if an exception under section 72(t) applies.
periodic payments under section 72(q)(2)(D).
For further guidance on determining amounts allocable to
If part of a distribution is paid in a direct rollover and part is an IRR, see Notice 2010-84, Q/A-13.
not, you must file a separate Form 1099-R for each part
showing the appropriate code on each form. Box 11. 1st Year of Desig. Roth Contrib.
Governmental section 457(b) plan distributions. Enter the first year of the 5-tax-year period. This is the year in
Generally, a distribution from a governmental section 457(b) which the designated Roth account was first established by
plan is not subject to the 10% additional tax under section the recipient.
72(t). However, an early distribution from a governmental
section 457(b) plan of an amount that is attributable to a Box 12. FATCA Filing Requirement Checkbox
rollover from another type of eligible retirement plan or IRA is Check the box if you are an FFI reporting a cash value
subject to the additional tax as if the distribution were from a insurance contract or annuity contract that is a U.S. account
plan described in section 401(a). See section 72(t)(9). If the in a manner similar to that required under section 6047(d).
distribution consists solely of amounts that are not See Regulations section 1.1471-4(d)(5)(i)(B) for this election.
attributable to such a rollover, enter Code 2 in box 7. If the In addition, check the box if you are a U.S. payer that is
distribution consists solely of amounts attributable to such a reporting on Form 1099-R as part of satisfying your
rollover, then enter the appropriate code in box 7 as if the requirement to report with respect to a U.S. account for
distribution were from a plan described in section 401(a). If chapter 4 purposes, as described in Regulations section
the distribution is made up of amounts from both sources, 1.1471-4(d)(2)(iii)(A).
you must file separate Forms 1099-R for each part of the
distribution unless Code 2 would be entered on Box 13. Date of Payment
each form. Enter here the date payment was made for reportable death
benefits under section 6050Y.
Box 8. Other
Enter the current actuarial value of an annuity contract that is Boxes 14–19. State and Local Information
part of a lump-sum distribution. Do not include this item in These boxes and Copies 1 and 2 are provided for your
boxes 1 and 2a. convenience only and need not be completed for the IRS.
To determine the value of an annuity contract, show the Use the state and local information boxes to report
value as an amount equal to the current actuarial value of the distributions and taxes for up to two states or localities. Keep
annuity contract, reduced by an amount equal to the excess the information for each state or locality separated by the
broken line. If state or local income tax has been withheld on

-14- Instructions for Forms 1099-R and 5498 (2023)

this distribution, you may enter it in boxes 14 and 17, as boxes 16 and 19, you may enter the amount of the state or
appropriate. In box 15, enter the abbreviated name of the local distribution. Copy 1 may be used to provide information
state and the payer's state identification number. The state to the state or local tax department. Copy 2 may be used as
number is the payer's identification number assigned by the the recipient's copy in filing a state or local income tax return.
individual state. In box 18, enter the name of the locality. In
Table 1. Guide to Distribution Codes
Guide to Distribution Codes
*Used with code (if
Distribution Codes Explanations
applicable)

1—Early distribution, no known exception. Use Code 1 only if the participant has not reached age 591/2, and you do not 8, B, D, K, L, M, or P
know if any of the exceptions under Code 2, 3, or 4 apply. However, use Code 1
even if the distribution is made for medical expenses, health insurance premiums,
qualified higher education expenses, a first-time home purchase, a qualified
reservist distribution, or a qualified birth or adoption distribution under section
72(t)(2)(B), (D), (E), (F), (G), or (H). Code 1 must also be used even if a taxpayer
is 591/2 or older and he or she modifies a series of substantially equal periodic
payments under section 72(q), (t), or (v) prior to the end of the 5-year period
which began with the first payment.
2—Early distribution, exception applies. Use Code 2 only if the participant has not reached age 591/2 and you know the 8, B, D, K, L, M, or P
distribution is the any of the following.
• A Roth IRA conversion (an IRA converted to a Roth IRA).
• A distribution made from a qualified retirement plan or IRA because of an IRS
levy under section 6331.
• A governmental section 457(b) plan distribution that is not subject to the
additional 10% tax. But see Governmental section 457(b) plans, earlier, for
information on distributions that may be subject to the 10% additional tax.
• A distribution from a qualified retirement plan after separation from service in
or after the year the participant has reached age 55.
• A distribution from a governmental defined benefit plan to a public safety
employee (as defined in section 72(t)(10)(B)) after separation from service, in or
after the year the employee has reached age 50.
• A distribution that is part of a series of substantially equal periodic payments,
as described in section 72(q), (t), (u), or (v).
• A distribution that is a permissible withdrawal under an eligible automatic
contribution arrangement (EACA).
• Any other distribution subject to an exception under section 72(q), (t), (u), or
(v) that is not required to be reported using Code 1, 3, or 4.
3—Disability. For these purposes, see section 72(m)(7). D
4—Death. Use Code 4 regardless of the age of the participant to indicate payment to a 8, A, B, D, G, H, K, L, M, or P
decedent's beneficiary, including an estate or trust. Also, use it for death benefit
payments made by an employer but not made as part of a pension, profit-sharing,
or retirement plan. Also, use it for payments of reportable death benefits.
5—Prohibited transaction. Use Code 5 if there was a prohibited transaction involving the IRA account. Code None
5 means the account is no longer an IRA.
6—Section 1035 exchange. Use Code 6 to indicate the tax-free exchange of life insurance, annuity, long-term W
care insurance, or endowment contracts under section 1035.

Instructions for Forms 1099-R and 5498 (2023) -15-

 Guide to Distribution Codes
*Used with code (if
Distribution Codes Explanations
applicable)
7—Normal distribution. Use Code 7: (a) for a normal distribution from a plan, including a traditional IRA, A, B, D, K, L, or M
section 401(k), or section 403(b) plan, if the employee/taxpayer is at least age
591/2; (b) for a Roth IRA conversion if the participant is at least age 591/2; and (c)
to report a distribution from a life insurance, annuity, or endowment contract and
for reporting income from a failed life insurance contract under section 7702(g)
and (h). See Rev. Proc. 2008-42, 2008-29 I.R.B. 160, available at IRS.gov/irb/
2008-29_IRB#RP-2008-42. Generally, use Code 7 if no other code applies. Do
not use Code 7 for a Roth IRA.
Note. Code 1 must be used even if a taxpayer is age 591/2 or older and he or she
modifies a series of substantially equal periodic payments under section 72(q),
(t), or (v) prior to the end of the 5-year period which began with the first payment.
8—Excess contributions plus earnings/excess Use Code 8 for an IRA distribution under section 408(d)(4), unless Code P 1, 2, 4, B, J, or K
deferrals (and/or earnings) taxable in 2023. applies. Also, use this code for corrective distributions of excess deferrals,
excess contributions, and excess aggregate contributions, unless Code P
applies. See Corrective Distributions, earlier, and IRA Revocation or Account
Closure, earlier, for more information.
9—Cost of current life insurance protection. Use Code 9 to report premiums paid by a trustee or custodian for current life or None
other insurance protection. See the instructions for Box 2a, earlier, for more
information.
A—May be eligible for 10-year tax option. Use Code A only for participants born before January 2, 1936, or their 4 or 7
beneficiaries to indicate the distribution may be eligible for the 10-year tax option
method of computing the tax on lump-sum distributions (on Form 4972, Tax on
Lump-Sum Distributions). To determine whether the distribution may be eligible
for the tax option, you need not consider whether the recipient used this method
(or capital gain treatment) in the past.
B—Designated Roth account distribution. Use Code B for a distribution from a designated Roth account. But use Code E 1, 2, 4, 7, 8, G, L, M, P, or U
for a section 415 distribution under EPCRS (see Code E) or Code H for a direct
rollover to a Roth IRA.
C—Reportable death benefits under section Use Code C for a distribution to report payments of reportable death benefits. D
6050Y.
D—Annuity payments from nonqualified annuities Use Code D for a distribution from any plan or arrangement not described in 1, 2, 3, 4, 7, or C
and distributions from life insurance contracts section 401(a), 403(a), 403(b), 408, 408A, or 457(b).
that may be subject to tax under section 1411.
E—Distributions under Employee Plans See Distributions under Employee Plans Compliance Resolution System None
Compliance Resolution System (EPCRS). (EPCRS), earlier.
F—Charitable gift annuity. See Charitable gift annuities, earlier. None
G—Direct rollover and direct payment. Use Code G for a direct rollover from a qualified plan, a section 403(b) plan, or a 4, B, or K
governmental section 457(b) plan to an eligible retirement plan (another qualified
plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA). See
Direct Rollovers, earlier. Also, use Code G for a direct payment from an IRA to an
accepting employer plan, and for IRRs that are direct rollovers.
Note. Do not use Code G for a direct rollover from a designated Roth account to
a Roth IRA. Use Code H.
H—Direct rollover of a designated Roth account Use Code H for a direct rollover of a distribution from a designated Roth account 4
distribution to a Roth IRA. to a Roth IRA.
J—Early distribution from a Roth IRA. Use Code J for a distribution from a Roth IRA when Code Q or Code T does not 8 or P
apply. But use Code 2 for an IRS levy and Code 5 for a prohibited transaction.
K—Distribution of traditional IRA assets not Use Code K to report distributions of IRA assets not having a readily available 1, 2, 4, 7, 8, or G
having a readily available FMV. FMV. These assets may include:
• Stock, other ownership interest in a corporation, short- or long-term debt
obligations, not readily tradable on an established securities market;
• Ownership interest in a limited liability company (LLC), partnership, trust, or
similar entity (unless the interest is traded on an established securities market);
• Real estate;
• Option contracts or similar products not offered for trade on an established
option exchange; or
• Other asset that does not have a readily available FMV.

-16- Instructions for Forms 1099-R and 5498 (2023)

 Guide to Distribution Codes
*Used with code (if
Distribution Codes Explanations
applicable)
L—Loans treated as deemed distributions under Do not use Code L to report a plan loan offset. See Loans Treated as 1, 2, 4, 7, or B
section 72(p). Distributions, earlier.
M—Qualified plan loan offset. Use Code M for a qualified plan loan offset (which is generally a type of plan loan 1, 2, 4, 7, or B
offset due to severance from employment or termination of the plan). See Plan
loan offsets, earlier.
N—Recharacterized IRA contribution made for Use Code N for a recharacterization of an IRA contribution made for 2023 and None
2023. recharacterized in 2023 to another type of IRA by a trustee-to-trustee transfer or
with the same trustee.
P—Excess contributions plus earnings/excess See the explanation for Code 8. The IRS suggests that anyone using Code P for 1, 2, 4, B, or J
deferrals taxable in 2022. the refund of an IRA contribution under section 408(d)(4), including excess Roth
IRA contributions, advise payees, at the time the distribution is made, that the
earnings are taxable in the year in which the contributions were made.
Q—Qualified distribution from a Roth IRA. Use Code Q for a distribution from a Roth IRA if you know that the participant None
meets the 5-year holding period and:
• The participant has reached age 591/2,
• The participant died, or
• The participant is disabled.
Note. If any other code, such as 8 or P, applies, use Code J.
R—Recharacterized IRA contribution made for Use Code R for a recharacterization of an IRA contribution made for 2022 and None
2022. recharacterized in 2023 to another type of IRA by a trustee-to-trustee transfer or
with the same trustee.
S—Early distribution from a SIMPLE IRA in the Use Code S only if the distribution is from a SIMPLE IRA in the first 2 years, the None
first 2 years, no known exception. employee/taxpayer has not reached age 591/2, and none of the exceptions under
section 72(t) are known to apply when the distribution is made. The 2-year period
begins on the day contributions are first deposited in the individual's SIMPLE IRA.
Do not use Code S if Code 3 or 4 applies.
T—Roth IRA distribution, exception applies. Use Code T for a distribution from a Roth IRA if you do not know if the 5-year None
holding period has been met but:
• The participant has reached age 591/2,
• The participant died, or
• The participant is disabled.
Note. If any other code, such as 8 or P, applies, use Code J.
U—Dividends distributed from an ESOP under Use Code U for a distribution of dividends from an employee stock ownership B
section 404(k). plan (ESOP) under section 404(k). These are not eligible rollover distributions.
Note. Do not report dividends paid by the corporation directly to plan participants
or their beneficiaries. Continue to report those dividends on Form 1099-DIV.
W—Charges or payments for purchasing qualified Use Code W for charges or payments for purchasing qualified long-term care 6
long-term care insurance contracts under insurance contracts under combined arrangements which are excludable under
combined arrangements. section 72(e)(11) against the cash value of an annuity contract or the cash
surrender value of a life insurance contract.
*See the first two Cautions for the box 7 instructions, earlier.

You are required to file Form 5498 even if required

Specific Instructions for Form 5498 ! minimum distributions (RMDs) or other annuity or
File Form 5498, IRA Contribution Information, with the IRS by CAUTION periodic payments have started.
May 31, 2024, for each person for whom in 2023 you Report contributions to a Kay Bailey Hutchison Spousal
maintained any individual retirement arrangement (IRA), IRA under section 219(c) on a separate Form 5498 using the
including a deemed IRA under section 408(q). name and TIN of the spouse.
An IRA includes all investments under one IRA plan. It is For contributions made between January 1 and April 15,
not necessary to file a Form 5498 for each investment under 2024, trustees and issuers should obtain the participant's
one plan. For example, if a participant has three certificates designation of the year for which the contributions are made.
of deposit (CDs) under one IRA plan, only one Form 5498 is
required for all contributions and the fair market values Direct rollovers, transfers, and recharacterizations. You
(FMVs) of the CDs under the plan. However, if a participant must report the receipt of a direct rollover from a qualified
has established more than one IRA plan with the same plan, section 403(b) plan, or governmental section 457(b)
trustee, a separate Form 5498 must be filed for each plan. plan to an IRA. Report a direct rollover in box 2. For
information on direct rollovers of eligible rollover distributions,
Contributions. You must report contributions to any IRA on see Direct Rollovers, earlier.
Form 5498. See the instructions under boxes 1, 2, 3, 4, 8, 9, If a rollover or trustee-to-trustee transfer is made from a
10, 13a, and 14a, later. If no reportable contributions were savings incentive match plan for employees (SIMPLE) IRA to
made for 2023, complete only boxes 5 and 7, and boxes 11, an IRA that is not a SIMPLE IRA and the trustee has
12a, 12b, 15a, and 15b, if applicable. See Reporting FMV of adequately substantiated information that the participant has
certain specified assets, later. not satisfied the first 2 years of plan participation, report the

Instructions for Forms 1099-R and 5498 (2023) -17-

amount as a regular contribution in box 1 even if the amount closed IRA, see IRA Revocation or Account Closure, in the
exceeds $6,500 ($7,500 for participants 50 or older). Specific Instructions for Form 1099-R, earlier.
Transfers. Do not report on Form 5498 a Total distribution, no contributions. Generally, if a total
trustee-to-trustee transfer from (a) a traditional IRA or a distribution was made from an account during the year and
simplified employee pension (SEP) IRA to another traditional no contributions, including rollovers, recharacterizations, or
IRA or SEP IRA, or to a SIMPLE IRA after the first 2 years of Roth IRA conversion amounts, were made for that year, you
plan participation; (b) a SIMPLE IRA to another SIMPLE IRA, need not file Form 5498 or furnish the annual statement to
or to a traditional IRA or SEP IRA after the first 2 years of plan reflect that the FMV on December 31 was zero.
participation; or (c) a Roth IRA to another Roth IRA.
Recharacterizations. You must report each RMDs. An IRA (other than a Roth IRA) owner/participant
recharacterization of an IRA contribution. If a participant must begin taking distributions for each calendar year
makes a contribution to an IRA (first IRA) for a year, the beginning with the calendar year in which the participant
participant may choose to recharacterize the contribution by attains age 72 (it was age 70½ for participants who attained
transferring, in a trustee-to-trustee transfer, any part of the age 70½ before 2020). The distribution for the 72 year must
contribution (plus earnings) to another IRA (second IRA). The be made no later than April 1 of the following calendar year;
contribution is treated as made to the second IRA RMDs for any other year must be made no later than
(recharacterization). A recharacterization may be made with December 31 of the year. See Regulations section 1.401(a)
the same trustee or with another trustee. The trustee of the (9)-6 for RMDs from annuity contracts.
first IRA must report the amount contributed before the Regulations section 1.401(a)(9)-6 does not reflect
recharacterization as a contribution on Form 5498 and the the RMD change from age 701/2 to age 72.
recharacterization as a distribution on Form 1099-R. The
!
CAUTION
trustee of the second IRA must report the amount received
For each IRA you held as of December 31 of the prior
(FMV) in box 4 on Form 5498 and check the type of IRA in
year, if an RMD is required for the year, you must provide a
box 7.
statement to the IRA participant by January 31 regarding the
All recharacterized contributions received by an IRA in the RMD using one of two alternative methods described below.
same year must be totaled and reported on one Form 5498 in You are not required to use the same method for all IRA
box 4. You may report the FMV of the account on the same participants; you can use Alternative one for some IRA
Form 5498 you use to report a recharacterization of an IRA participants and Alternative two for the rest. Under both
contribution and any other contributions made to the IRA for methods, the statement must inform the participant that you
the year. are reporting to the IRS that an RMD is required for the year.
No recharacterizations of conversions made in 2018 or The statement can be provided in conjunction with the
later. A conversion of a traditional IRA to a Roth IRA, and a statement of the FMV.
rollover from any other eligible retirement plan to a Roth IRA,
If the IRA participant is deceased, and the surviving
made in the participant’s tax years beginning after December
spouse is the sole beneficiary, special rules apply for RMD
31, 2017, cannot be recharacterized as having been made to
reporting. If the surviving spouse elects to treat the IRA as
a traditional IRA.
the spouse's own, then report with the surviving spouse as
Catch-up contributions. Participants who are age 50 or the owner. However, if the surviving spouse does not elect to
older by the end of the year may be eligible to make catch-up treat the IRA as the spouse's own, then you must continue to
IRA contributions or catch-up elective deferral contributions. treat the surviving spouse as the beneficiary. Until further
The annual IRA regular contribution limit of $6,500 is guidance is issued, no reporting is required for IRAs of
increased to $7,500 for participants age 50 or older. deceased participants (except where the surviving spouse
Catch-up elective deferral contributions reported on Form elects to treat the IRA as the spouse's own, as described
5498 may be made under a salary reduction SEP (SARSEP) above).
or under a SIMPLE IRA plan. For 2023, up to $7,500 in Alternative one. Under this method, include in the
catch-up elective deferral contributions may be made under a statement the amount of the RMD with respect to the IRA for
SARSEP, and up to $3,500 to a SIMPLE IRA plan. For more the calendar year and the date by which the distribution must
information on catch-up elective deferral contributions, see be made. The amount may be calculated assuming the sole
Regulations section 1.414(v)-1. beneficiary of the IRA is not a spouse more than 10 years
Include any catch-up amounts when reporting younger than the participant. Use the value of the account as
contributions for the year in box 1, 8, 9, or 10, or for a prior of December 31 of the prior year to compute the amount. See
year in box 13a. the instructions for boxes 11, 12a, and 12b, later, for how to
report.
Roth IRA conversions. You must report the receipt of a
Alternative two. Under this method, the statement
conversion from an IRA to a Roth IRA even if the conversion
informs the participant that a minimum distribution with
is with the same trustee. Report the total amount converted
respect to the IRA is required for the calendar year and the
from a traditional IRA, SEP IRA, or SIMPLE IRA to a Roth
date by which such amount must be distributed. You must
IRA in box 3.
include an offer to furnish the participant with a calculation of
IRA revocation or account closure. If a traditional IRA, the amount of the RMD if requested by the participant.
Roth IRA, or SIMPLE IRA is revoked during its first 7 days Electronic filing. These statements may be furnished
(under Regulations section 1.408-6(d)(4)(ii)) or closed at any electronically using the procedures described in part F of the
time by the IRA trustee pursuant to its resignation or such 2023 General Instructions for Certain Information Returns.
other event mandating the closure of the account, Form 5498 Reporting to the IRS. If an RMD is required, check
must be filed to report any regular, rollover, IRA conversion, box 11. See Box 11, later. For example, box 11 is checked
SEP IRA, or SIMPLE IRA contributions to the IRA. For on the Form 5498 for a 2024 RMD. You are not required to
information about reporting a distribution from a revoked or report to the IRS the amount or the date by which the

-18- Instructions for Forms 1099-R and 5498 (2023)

distribution must be made. However, see the Caution decedent and the successor beneficiary as the beneficiary.
following the box 11 instructions, later, for reporting RMDs to Using the example above (Brian Willow as beneficiary of
participants. Joan Maple), when that account passes to Brian's successor
For more details, see Notice 2002-27 on page 814 of IRB beneficiary, Maurice Poplar, Form 5498 and the annual
2002-18 at IRS.gov/pub/irs-irbs/irb02-18.pdf, as clarified by statement for Maurice should state “Maurice Poplar as
Notice 2003-3 on page 258 of IRB 2003-2 at IRS.gov/pub/irs- beneficiary of Brian Willow.” The final Form 5498 and annual
irbs/irb03-02.pdf. statement for Brian Willow will state “Brian Willow as
beneficiary of Joan Maple” and will show the FMV as of the
Notices 2002-27 and 2003-3 do not reflect the RMD date of Brian's death or year-end valuation, depending on the
! change from age 701/2 to age 72. method chosen.
For more information about the reporting requirements for
CAUTION

Inherited IRAs. In the year an IRA participant dies, you, as inherited IRAs, see Rev. Proc. 89-52, 1989-2 C.B. 632.
an IRA trustee or issuer, must generally file a Form 5498 and
Disaster relief reporting. Special tax law provisions and
furnish an annual statement for the decedent and a Form
reporting instructions may apply when the President declares
5498 and an annual statement for each nonspouse
a location to be a major disaster area. To determine the
beneficiary. An IRA holder must be able to identify the source
location of and special rules applicable to individual federally
of each IRA he or she holds for purposes of figuring the
declared disaster areas, go to IRS.gov, click on “News,” and
taxation of a distribution from an IRA. Thus, the decedent's
then click on “Tax Relief in Disaster Situations.” The
name must be shown on the beneficiary's Form 5498 and
information provided includes:
annual statement. For example, you may enter “Brian Willow
as beneficiary of Joan Maple” or something similar that
• A list of the areas for which relief has recently been
granted,
signifies that the IRA was once owned by Joan Maple. You
may abbreviate the word “beneficiary” as, for example,
• News releases detailing the scope of the relief and any
special reporting instructions, and
“bene.”
• A link to the Federal Emergency Management Agency's
For a spouse beneficiary, unless the spouse makes the list of federal disaster declarations. Also, go to IRS.gov/
IRA his or her own, treat the spouse as a nonspouse DisasterRelief for more information.
beneficiary for reporting purposes. If the spouse makes the
See the instructions for boxes 13a through 13c for
IRA his or her own, do not report the beneficiary designation
reporting postponed contributions, later.
on Form 5498 and the annual statement.
An IRA set up to receive a direct rollover for a nonspouse Special reporting for U.S. Armed Forces in designated
designated beneficiary is treated as an inherited IRA. combat zones. A participant who is serving in or in support
FMV. On the decedent's Form 5498 and annual of the Armed Forces in a designated combat zone or
statement, you must enter the FMV of the IRA on the date of qualified hazardous duty area has an additional period after
death in box 5. Or you may choose the alternate reporting the normal contribution due date of April 15 to make IRA
method and report the FMV as of the end of the year in which contributions for a prior year. The period is the time the
the decedent died. This alternate value will usually be zero participant was in the designated zone or area plus at least
because you will be reporting the end-of-year valuation on 180 days. The participant must designate the IRA
the beneficiary's Form 5498 and annual statement. The same contribution for a prior year to claim it as a deduction on the
figure should not be shown on both the beneficiary's and income tax return.
decedent's forms. If you choose to report using the alternate Under section 219(f), combat zone compensation that is
method, you must inform the executor or administrator of the excluded from gross income under section 112 is treated as
decedent's estate of his or her right to request a includible compensation for purposes of determining IRA
date-of-death valuation. contributions.
On the beneficiary's Form 5498 and annual statement, the A qualifying participant is:
FMV of that beneficiary's share of the IRA as of the end of the • Serving or has served in a combat zone;
year must be shown in box 5. Every year thereafter that the • Serving or has served in a qualifying hazardous duty area;
IRA exists, you must file Form 5498 and furnish an annual or
statement for each beneficiary who has not received a total • Serving or has served in an active direct support area.
distribution of his or her share of the IRA showing the FMV at If a qualifying participant designates an IRA contribution
the end of the year and identifying the IRA, as described for a prior year, other than an IRA contribution made by April
above. 15 for the preceding year, you must report the type of IRA
However, if a beneficiary takes a total distribution of his or (box 7) and the amount on Form 5498. Report the amount
her share of the IRA in the year of death, you need not file a either for (1) the year for which the contribution was made, or
Form 5498 or furnish an annual statement for that (2) a subsequent year. See the instructions for boxes 13a,
beneficiary, but you must still file Form 5498 for the 13b, and 13c, later.
decedent. 1. If you report a contribution for 2023 made before April
If you have no knowledge of the death of an IRA 15, 2024, no special reporting is required. Include the
participant until after you are required to file Form 5498 (May contribution in box 1 or box 10 of an original Form 5498 or of
31, 2024), you are not required to file a corrected Form 5498 a corrected Form 5498 if an original was previously filed.
or furnish a corrected annual statement. However, you must 2. If you report the contribution on Form 5498 in a
still provide the date-of-death valuation in a timely manner to subsequent year, you must include the year for which the
the executor or administrator upon request. contribution was made, the amount of the contribution, and
In the case of successor beneficiaries, apply the one of the following indicators.
preceding rules by treating the prior beneficiary as the

Instructions for Forms 1099-R and 5498 (2023) -19-

 a. Use “EO13239” for Afghanistan and those countries in report prior year contributions by combat zone participants
direct support, including Djibouti, Jordan, Kyrgyzstan, on a corrected Form 5498 electronically or on paper.
Pakistan, Somalia, Syria, Tajikistan, Uzbekistan, and Yemen. See part F in the 2023 General Instructions for Certain
b. Use “EO12744” for the Arabian Peninsula, including air Information Returns for information on how to request a
space and adjacent waters (the Persian Gulf; the Red Sea; waiver on Form 8508.
the Gulf of Oman; the Gulf of Aden; the portion of the Arabian
Reporting FMV of certain specified assets. Assets held
Sea that lies north of 10 degrees north latitude and west of 68
in an IRA that are not readily tradable on an established
degrees east longitude; the total land areas of Iraq, Kuwait,
securities market or option exchange, or that do not have a
Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab
readily available FMV, must be reported at the FMV
Emirates; Lebanon, and Turkey east of longitude 33.51E),
determined as of December 31, 2023. See the instructions
and Jordan which is in direct support of the Arabian
for boxes 15a and 15b, later.
Peninsula.
c. Use “EO13119” or “PL106-21” (Public Law 106-21) for Corrected Form 5498. If you file a Form 5498 with the IRS
the Federal Republic of Yugoslavia (Serbia and and later discover that there is an error on it, you must correct
Montenegro), Albania, Kosovo, the Adriatic Sea, and the it as soon as possible. See part H in the 2023 General
Ionian Sea north of the 39th parallel. (Note. The combat zone Instructions for Certain Information Returns, or Pub. 1220, if
designation for Montenegro and Kosovo (previously a filing electronically. For example, if you reported contributions
province within Serbia) under Executive Order 13119 as rollover contributions in box 2, and you later discover that
remains in force even though Montenegro and Kosovo part of the contribution was not eligible to be rolled over and
became independent nations since EO13119 was signed.) was, therefore, a regular contribution that should have been
reported in box 1 (even if the amount exceeds the regular
d. Use “PL115-97” (Public Law 115-97) for the Sinai contribution limit), you must file a corrected Form 5498.
Peninsula of Egypt.
Statements to participants. If you are required to file Form
For additions to, or subtractions from, the list of 5498, you must provide a statement to the participant. By
! combat zones or qualified hazardous duty areas January 31, 2024, you must provide participants with a
CAUTION implemented by executive orders and public laws,
statement of the December 31, 2023, value of the
and direct support areas designated by the Secretary of participant's account (including information required to be
Defense, after the publication date of these instructions, go to reported in boxes 15a and 15b for hard-to-value assets) and
IRS.gov/Form5498. RMD, if applicable. Trustees of SIMPLE IRAs must also
Example. For a $4,000 IRA contribution designated by a provide a statement of the account activity by January 31,
participant who served under EO13239 for the tax year 2022, 2024. Contribution information for all other types of IRAs
enter “4000” in box 13a, “2022” in box 13b, and “EO13239” in must be provided by May 31, 2024. You are not required to
box 13c only. Make no entry in box 1 or box 10. provide information to the IRS or to participants as to whether
Repayment of qualified reservist distributions. Report a contribution is deductible or nondeductible. In addition, the
any repayment of a qualified reservist distribution as participant is not required to tell you whether a contribution is
described in section 72(t)(2)(G) in boxes 14a (amount) and deductible or nondeductible.
14b (with indicator code “QR”). If you furnished a statement of the FMV of the account
Repayment of qualified disaster distributions. Report (including information required to be reported in boxes 15a
any repayment of a qualified disaster distribution, as and 15b for hard-to-value assets) and RMD, if applicable, to
described in applicable disaster legislation, in boxes 14a the participant by January 31, 2024, and no reportable
(amount) and 14b (with indicator code “DD”). contributions, including rollovers, recharacterizations, or Roth
Repayment of qualified birth or adoption IRA conversions, were made for 2023, you need not furnish
distributions. Report any repayment of a qualified birth or another statement (or Form 5498) to the participant to report
adoption distribution as described in section 72(t)(2)(H) in zero contributions. However, you must file Form 5498 with
boxes 14a (amount) and 14b (with indicator code "BA"). the IRS by May 31, 2024, to report the December 31, 2023,
Military death gratuities and servicemembers' group FMV of the account and the FMV of hard-to-value assets.
life insurance (SGLI) payments. Recipients of military This rule also applies to beneficiary accounts under the
death gratuities and SGLI payments may contribute amounts inherited IRA rules, earlier. For more information about the
received to a Roth IRA, up to the amount of the gratuity or requirement to furnish statements to participants, see part M
SGLI payment less any amounts contributed to Coverdell in the 2023 General Instructions for Certain Information
ESAs. Report the amount of the rollover contribution in box 2 Returns.
only. See section 408A(e)(2), and Notice 2010-15, 2010-06 If you do not furnish another statement to the
I.R.B. 390, available at IRS.gov/irb/ ! participant because no reportable contributions were
2010-06_IRB#NOT-2010-15, for more information on CAUTION made for the year, the statement of the FMV of the

limitations. account must contain a legend designating which information

Electronic filers. You may request an automatic waiver is being filed with the IRS.
from filing Forms 5498 electronically for combat zone
participants by submitting Form 8508, Request for Waiver Truncating participant's TIN on payee statements.
From Filing Information Returns Electronically. Once you Pursuant to Regulations section 301.6109-4, all filers of Form
have received the waiver, you may report all Forms 5498 for 5498 may truncate a participant’s TIN (social security number
combat zone participants on paper. Alternatively, you may (SSN), individual taxpayer identification number (ITIN),
report contributions made by the normal contribution due adoption taxpayer identification number (ATIN), or employer
date electronically and report the contributions made after identification number (EIN)) on payee statements. Truncation
the normal contribution due date on paper. You may also is not allowed on any documents the filer files with the IRS. A
trustee's or issuer's TIN may not be truncated on any form.

-20- Instructions for Forms 1099-R and 5498 (2023)

See part J in the 2023 General Instructions for Certain • Qualified birth or adoption distributions.
Information Returns. See the instructions for boxes 13a through 13c, 14a, and
14b, later.
Account Number
The account number is required if you have multiple Box 3. Roth IRA Conversion Amount
accounts for a recipient for whom you are filing more than Enter the amount converted from a traditional IRA, SEP IRA,
one Form 5498. Additionally, the IRS encourages you to or SIMPLE IRA to a Roth IRA during 2023. Do not include a
designate an account number for all Forms 5498 that you file. rollover from one Roth IRA to another Roth IRA, or a qualified
See part L in the 2023 General Instructions for Certain rollover contribution under section 408A(e) from an eligible
Information Returns. retirement plan (other than an IRA) to a Roth IRA. These
rollovers are reported in box 2.
Box 1. IRA Contributions (Other Than Amounts
in Boxes 2–4, 8–10, 13a, and 14a) Box 4. Recharacterized Contributions
Enter contributions to a traditional IRA made in 2023 and Enter any amounts recharacterized plus earnings from one
through April 15, 2024, designated for 2023. type of IRA to another.
Report gross contributions, including the amount allocable Box 5. FMV of Account
to the cost of life insurance (see Box 6, later) and including
Enter the FMV of the account on December 31, 2023. For
any excess contributions, even if the excess contributions
inherited IRAs, see Inherited IRAs, earlier.
were withdrawn. If an excess contribution is treated as a
contribution in a subsequent year under section 219(f)(6), do Trustees and custodians are responsible for ensuring
not report it on Form 5498 for the subsequent year. It has ! that all IRA assets (including those not traded on
already been reported as a contribution on Form 5498 for the CAUTION established markets or not having a readily

year it was actually contributed. determinable market value) are valued annually at their FMV.
Also include employee contributions to an IRA under a
SEP plan. These are contributions made by the employee, Box 6. Life Insurance Cost Included in Box 1
not by the employer, that are treated as regular IRA For endowment contracts only, enter the amount included in
contributions subject to the 100% of compensation and box 1 allocable to the cost of life insurance.
$6,500 ($7,500 for participants age 50 or older) limits of
section 219. Do not include employer SEP IRA contributions Box 7. Checkboxes
or SARSEP contributions under section 408(k)(6). Instead, Check the appropriate box.
include them in box 8.
IRA. Check “IRA” if you are filing Form 5498 to report
Also, do not include in box 1 employer contributions, information about a traditional IRA account.
including salary deferrals, to a SIMPLE IRA (report them in
box 9) and a Roth IRA (report them in box 10). In addition, do SEP. Check “SEP” if you are filing Form 5498 to report
not include in box 1 rollovers and recharacterizations (report information about a SEP IRA. If you do not know whether the
rollovers in box 2 and recharacterizations in box 4), or a Roth account is a SEP IRA, check the “IRA” box.
IRA conversion amount (report in box 3). SIMPLE. Check “SIMPLE” if you are filing Form 5498 to
report information about a SIMPLE IRA account. Do not file
Box 2. Rollover Contributions Form 5498 for a SIMPLE 401(k) plan.
Enter any rollover contributions (or contributions treated as
Roth IRA. Check “Roth IRA” if you are filing Form 5498 to
rollovers) to any IRA received by you during 2023. These
report information about a Roth IRA account.
contributions may be any of the following.
• A 60-day rollover between Roth IRAs or between other Box 8. SEP Contributions
types of IRAs.
• A direct or indirect (within 60 days) rollover from a qualified Enter employer contributions made to a SEP IRA (including
plan, section 403(b) plan, or governmental section 457(b) salary deferrals under a SARSEP) during 2023, including
plan. contributions made in 2023 for 2022, but not including
• Any qualified rollover contribution, as defined in section contributions made in 2024 for 2023. Trustees and issuers
408A(e) from an eligible retirement plan (other than an IRA) are not responsible for reporting the year for which SEP
to a Roth IRA. contributions are made. Do not enter employee contributions
• A military death gratuity. to an IRA under a SEP plan. Report any employee
• An SGLI payment. contributions to an IRA under a SEP plan in box 1. Also,
include in box 8 SEP contributions made by a self-employed
For the rollover of property, enter the FMV of the property person to his or her own account.
on the date you receive it. This value may be different from
the value of the property on the date it was distributed to the Box 9. SIMPLE Contributions
participant. Enter employer contributions, including salary deferrals,
For more details, see Pub. 590-A. made to a SIMPLE IRA during 2023, including contributions
made in 2023 for 2022, but not including contributions made
Note. Do not use box 2 for late rollover contributions, in 2024 for 2023. Trustees and issuers are not responsible
including rollovers of qualified plan loan offset amounts after for reporting the year for which SIMPLE contributions are
60 days or any of the following repayments made after 60 made. Do not include contributions to a SIMPLE 401(k) plan.
days.
• Qualified reservist distributions.
• Qualified disaster distributions.
Instructions for Forms 1099-R and 5498 (2023) -21-
Box 10. Roth IRA Contributions • For participants' service in a combat zone, hazardous duty
Enter any contributions made to a Roth IRA in 2023 and area, or direct support area, enter the appropriate executive
through April 15, 2024, designated for 2023. However, report order or public law, as defined under Special reporting for
Roth IRA conversion amounts in box 3. Report a qualified U.S. Armed Forces in designated combat zones, earlier.
rollover contribution made under section 408A(e) from an • For participants who are “affected taxpayers,” as
eligible retirement plan (other than an IRA) to a Roth IRA in described in an IRS News Release relating to a federally
box 2. designated disaster area, enter “FD.” (For a repayment of a
qualified disaster distribution, use boxes 14a and 14b.)
Box 11. Check if RMD for 2024 • For participants who are making a rollover of a qualified
plan loan offset amount, enter “PO.” See the discussion of
Check the box if the participant must take an RMD for 2024.
qualified plan loan offsets in the second paragraph under
You are required to check the box for the year in which the
Plan Loan Offsets in the Form 1099-R instructions, earlier.
IRA participant reaches age 72 even though the RMD for that
year need not be made until April 1 of the following year.
• For participants who have certified that the rollover
contribution is late because of one or more of the
Then, check the box for each subsequent year an RMD is
circumstances listed in section 3.02(2) of Rev. Proc.
required to be made.
2020-46, enter “SC.”
Boxes 12a and 12b are provided for your use to
! report RMD dates and amounts to participants. You Box 14a. Repayments
CAUTION may choose to complete these boxes, or continue to Enter the amount of any repayment of a qualified reservist
provide a separate Form 5498, or a separate statement, to distribution, a qualified disaster distribution, or a qualified
report the information required by Alternative one or birth or adoption distribution.
Alternative two, earlier. To determine the RMD, see the
regulations under sections 401(a)(9) and 408(a)(6) and (b) Box 14b. Code
(3). The regulations under the referenced Code sections do Enter “QR” for the repayment of a qualified reservist
not reflect the RMD change from age 70½ to age 72 although distribution, “DD” for repayment of a qualified disaster
guidance reflecting this change is being developed. distribution, or “BA” for repayment of a qualified birth or
adoption distribution.
Box 12a. RMD Date
Enter the RMD date if you are using Form 5498 to report the Box 15a. FMV of Certain Specified Assets
additional information. See RMDs, earlier. Enter the FMV of the investments in the IRA that are
specified in the categories identified below.
Box 12b. RMD Amount
Enter the RMD amount if you are using Form 5498 to report Box 15b. Code(s)
the additional information under Alternative One. See Enter the code for the type(s) of investments held in the IRA
Alternative one, earlier. for which the FMV is reported in box 15a. A maximum of two
codes can be entered in box 15b. If more than two codes
Box 13a. Postponed/late Contrib. apply, enter Code H.
Report the amount of any postponed contribution made in • A—Stock or other ownership interest in a corporation that
2023 for a prior year. If contributions were made for more is not readily tradable on an established securities market.
than 1 prior year, each prior year's postponed contribution • B—Short- or long-term debt obligation that is not traded on
must be reported on a separate form. Report the amount of a an established securities market.
late rollover contribution made during 2023, including • C—Ownership interest in a limited liability company or
rollovers that are (1) certified by participants, (2) qualified similar entity (unless the interest is traded on an established
plan loan offsets, and (3) related to taxpayers for federally securities market).
declared disasters. See Rev. Proc. 2020-46, 2020-45 I.R.B. • D—Real estate.
995, available at IRS.gov/irb/2020-45_IRB#REV- • E—Ownership interest in a partnership, trust, or similar
PROC-2020-46. If the participant also has a postponed entity (unless the interest is traded on an established
contribution, use a separate Form 5498 to report a late securities market).
rollover. • F—Option contract or similar product that is not offered for
trade on an established option exchange.
Box 13b. Year • G—Other asset that does not have a readily available
FMV.
Enter the year for which the postponed contribution in
box 13a was made. Leave this box blank for late rollover • H—More than two types of assets (listed in A through G)
are held in this IRA.
contributions and rollovers of qualified plan loan offset
amounts.

Box 13c. Code

Enter the reason the participant made the postponed
contribution.

-22- Instructions for Forms 1099-R and 5498 (2023)

Index

Federal income tax withholding 12 Qualified rollover contributions 5, 21

A Form 1099-R 1
Account closure, IRA 3, 18 Form 5498 17 R
Alternate payee under QDRO 8 Form 945 12 Recharacterized IRA contributions 6,
Annuity distributions 1-15 9, 12, 17
Automatic contribution G Reportable death benefits 1
arrangements 6 Guide to Distribution Codes 15-17 Required minimum distribution 18, 22
Automatic rollovers 4, 6 Retirement payments 1-15
I Revocation, IRA 3, 18
B In-plan Roth rollover (IRR) 3, 9, 14 RMD 18, 22
Beneficiaries 8 Inherited IRAs 19, 21 RMD amount 22
Insurance contracts 1, 13 RMD date 22
C Involuntary distributions 4, 6 Rollovers 4-6, 8-10, 12, 13, 17, 18, 21
IRA contributions 17 Roth IRA contributions 18, 21
Charitable gift annuities 9
IRA distributions 1, 3, 14, 15 Roth IRA conversions 3, 6, 11, 12, 18,
Combat zones, designated 19 21
Corrected Form 1099-R 8 IRA recharacterizations 3, 6, 10, 12,
17, 18, 21 Roth IRA distributions 3, 11, 12
Corrected Form 5498 20
Corrective distributions 6 IRA revocation 3, 18
S
Cost of current life insurance
protection 10 L Section 1035 exchange 2, 6, 9
Late rollovers 22 Section 402(f) notice 5
D Life insurance contract Section 404(k) dividends 2
distributions 2 SEP contributions 3, 11, 17, 21
Death benefit payments 9
Loans treated as distributions 4, 7 SEP distributions 3, 11, 13
Deemed IRAs 3
Losses, retirement distributions 7, 10 Servicemembers' Group Life
Designated Roth account, Insurance (SGLI) payments 20
contributions 3
M SIMPLE contributions 17, 21
Designated Roth account, direct
rollover 4, 5 SIMPLE distributions 3, 6, 11, 13
Military death gratuities 20 State and local information 14
Designated Roth account, Military retirement 2
distributions 9, 10, 14 Statements to recipients/
Direct rollovers 4-6, 8, 10, 12, 13, 16, participants 9
17, 21
N
Disaster relief reporting 19 Net unrealized appreciation 4, 10, 12, T
Disclaimer of an IRA 8 13 Taxable amount, retirement
Distributions under EPCRS 7 Nonperiodic distributions 12 distributions 10
DVECs 4 Nonqualified plan distributions 2 Transfers:
Nonresident aliens 9 Form 1099-R 6
E Form 5498 17
P
Eligible rollover distribution 4, 12, 13
Employee contributions, retirement Pension distributions 1-15 U
plan 13, 14 Periodic payments 12 U.S. Armed Forces, special
Employer securities, distributions 7, Permissible withdrawals under reporting 19
9, 10, 12, 13 section 414(w) 8
Endowment contracts 2, 21 Postponed contribution 22 W
Excess deferrals, excess Profit-sharing distributions 1-15
Withholding 12
contributions, corrective Federal income tax 12
distributions of 6 Q
QDRO 4, 6, 8
F Qualified HSA funding distributions 1
Failing ADP or ACP test, Qualified plan distributions 1-15
corrections 7

-23-