How to Fill Out Form 1099-R: Boxes, Codes, and Rollovers

To fill out Form 1099-R, enter the payer and recipient identifying information at the top, report the gross distribution in Box 1 and the taxable portion in Box 2a, show any federal tax withheld in Box 4 and previously taxed contributions in Box 5, select the correct distribution code in Box 7 (checking the IRA/SEP/SIMPLE box when it applies), complete the state boxes if the recipient’s state taxes retirement income, and send the right copies to the IRS, the state, and the recipient by their respective deadlines. The form is required any time a pension, retirement plan, IRA, or insurance contract distributes $10 or more to someone during the year, and the payer, not the recipient, prepares it.¹ What follows walks through each section in the order you’ll complete it.

Start With the Right Version of the Form

Copy A, the one that goes to the IRS on paper, is printed in a special red ink that IRS scanners read. A version printed from the IRS website or photocopied from another form will not scan, and the IRS may reject the filing or assess a penalty.² Order scannable forms from the IRS at IRS.gov/EmployerForms or buy them from an authorized vendor. If you file electronically through the FIRE system, the red-ink rule doesn’t apply because nothing goes to the IRS on paper.

Payer and Recipient Information

The top-left block asks for the payer’s full legal name, street address, and a working phone number so the IRS or the recipient can reach someone with questions about the amounts reported. Both the payer and the recipient need Taxpayer Identification Numbers: usually a Social Security number for an individual, and an Employer Identification Number for a business or trust.³

Format the recipient’s name and address the same way the Social Security Administration has them on file. Small mismatches between the name on the form and the name in SSA records can cause the IRS to flag the return. If you don’t have a correct TIN for the recipient, you still have to file the form, and you’ll owe separate penalties for the missing number.

Reporting the Distribution Amounts

Boxes 1 and 2a: Gross Distribution and Taxable Amount

Box 1 is the total amount distributed during the year before taxes or deductions. Box 2a is the portion of that amount subject to federal income tax. The two numbers often differ because after-tax contributions come back tax-free.

If you can’t determine the exact taxable portion, check “Taxable amount not determined” in Box 2b. This is common with older pension plans and certain insurance products where the cost basis records are incomplete. Checking the box moves the calculation to the recipient when they file.¹

Box 4: Federal Income Tax Withheld

Box 4 shows federal income tax already sent to the IRS on the recipient’s behalf. Default rates depend on the payment type. For nonperiodic distributions like a lump-sum IRA withdrawal, the default is 10%, and the recipient can adjust that from 0% to 100% using Form W-4R.⁴ For periodic payments like monthly pension checks, the recipient uses Form W-4P, and withholding works more like regular wages.

An eligible rollover distribution paid to the recipient in cash rather than rolled directly into another plan carries a mandatory 20% withholding rate. The recipient cannot elect a lower rate.⁵ Withholding this correctly is the payer’s responsibility.

Box 5: Employee Contributions

Box 5 reports previously taxed employee contributions, designated Roth contributions, or insurance premiums the recipient recovers tax-free during the year. For qualified plans, the figure follows whatever method you used to compute Box 2a. On a total payout, enter the entire recoverable amount. Do not include elective deferrals or any pre-tax contributions.⁶

Choosing the Distribution Code in Box 7

Box 7 is where most mistakes happen. The one- or two-character code tells the IRS what kind of distribution this was. It drives whether the recipient owes the 10% early withdrawal penalty, whether any of the distribution is taxable at all, and how the recipient reports it. A wrong code can make the IRS assess a penalty the recipient doesn’t owe, or miss one they do.

The codes you’ll use most often:⁷

Code 1 is an early distribution with no known exception. Use it when the recipient is under 59½ and you don’t know whether a penalty exception applies. Use Code 1 even when the distribution is for medical expenses, higher education, or a first-time home purchase, because the recipient claims those exceptions on their own return.
Code 2 is an early distribution where you, the payer, know an exception applies. This covers separation from service at age 55 or older from a qualified plan, Roth IRA conversions for recipients under 59½, distributions from governmental 457(b) plans, and substantially equal periodic payments.
Code 4 is death. Use it for any distribution paid to a beneficiary after the account holder dies, regardless of the decedent’s age, including payments to an estate or trust.
Code 7 is a normal distribution: someone age 59½ or older taking a regular withdrawal.
Code G is a direct rollover to a qualified plan, 403(b), governmental 457(b), or IRA.
Code Q is a qualified distribution from a Roth IRA, meaning it’s entirely tax-free.

If the distribution comes from a traditional IRA, SEP, or SIMPLE plan, also check the IRA/SEP/SIMPLE box next to Box 7. That checkbox gives the IRS the context it needs to apply the right rules to the code.¹

Rollovers and Roth Conversions

Direct Rollovers

A direct rollover, where the participant never touches the funds, still gets a 1099-R. Enter the full rollover amount in Box 1, put $0 in Box 2a, and use Code G in Box 7.⁷ The zero in Box 2a signals that nothing is taxable. Skip Boxes 3 and 6. If a non-spouse beneficiary who inherited the account is doing the rollover, enter both Code 4 and Code G in Box 7.

Roth IRA Conversions

A conversion from a traditional IRA to a Roth IRA triggers a 1099-R from the traditional IRA’s custodian. Report the full converted amount in both Box 1 and Box 2a, and check the IRA/SEP/SIMPLE box. In Box 7, use Code 2 if the account holder is under 59½ or Code 7 if they’re 59½ or older.⁷ The conversion is still reportable even if it’s a trustee-to-trustee transfer that never leaves the same institution. The recipient uses Form 8606 on their personal return to work out how much of the conversion is actually taxable.

State and Local Tax Boxes

Boxes 12 through 17 cover state-level reporting. Box 12 is any state income tax withheld, Box 13 is the payer’s state ID number, and Box 14 is the state distribution amount. Boxes 15 through 17 mirror that structure for local jurisdictions. Each state has its own rules about which retirement distributions are taxable and at what thresholds, so the figures here should reflect the state’s treatment rather than a straight copy of the federal numbers.

Distributing Copies and Meeting Deadlines

A completed 1099-R produces several copies. Copy A goes to the IRS. Copy 1 goes to the state or local tax department. Copy B goes to the recipient for their federal return, and Copy C is for the recipient’s records.²

Paper filers include Form 1096 as a cover sheet totaling all the 1099s in the batch.⁸ Electronic filers skip Form 1096. Any entity filing 10 or more information returns of any type during a calendar year must file electronically, which captures most professional plan administrators.⁹

The deadlines for 2026 filings:¹⁰

January 31 to furnish Copies B and C to the recipient.
February 28 to file paper Copy A with the IRS.
March 31 to file electronically with the IRS.

If a deadline lands on a weekend or legal holiday, it moves to the next business day.

Fixing a Mistake After Filing

Discover an error after filing, and you need to issue a corrected 1099-R promptly. Check the “CORRECTED” box at the top of the new form, fill in all the correct information, and send it to both the IRS and the recipient. The specific procedures live in the general instructions for information returns and, for electronic filers, Publication 1220.⁶

Penalties for Late or Incorrect Filing

The IRS charges per-form penalties for late or incorrect 1099-R filings, and the amount grows the longer you wait. For forms due in 2026:¹¹

Filed within 30 days of the deadline: $60 per form.
Filed after 30 days but by August 1: $130 per form.
Filed after August 1 or not filed at all: $340 per form.
Intentional disregard: $680 per form, with no annual cap.

Because the penalties apply separately to each form, dozens of late filings add up fast. The same tiers apply to furnishing incorrect or late statements to recipients. Filing with a wrong TIN counts as an error that triggers these penalties, which is why verifying identification numbers before the deadline is worth the time.

1
Internal Revenue Service. About Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
2
Internal Revenue Service. Form 1099-R – Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
3
Office of the Law Revision Counsel. 26 USC 6109 – Identifying Numbers
4
Internal Revenue Service. Form W-4R Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions
5
Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions
6
Internal Revenue Service. Instructions for Forms 1099-R and 5498 (2025)
7
Internal Revenue Service. Instructions for Forms 1099-R and 5498 – Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
8
Internal Revenue Service. About Form 1096, Annual Summary and Transmittal of U.S. Information Returns
9
Internal Revenue Service. Topic No. 801, Who Must File Information Returns Electronically
10
Internal Revenue Service. Publication 1099, General Instructions for Certain Information Returns
11
Internal Revenue Service. Information Return Penalties