Will I Get a 1099-R for a Direct Rollover? Code G and Reporting

Yes. You will receive a Form 1099-R for a direct rollover, even though the transfer itself is not taxable. The sending plan issues the form because assets left the original account, and the IRS uses it to match the distribution to your tax return. In a properly coded direct rollover, Box 1 shows the full amount moved, Box 2a shows zero, and Box 7 shows distribution Code G.

Why the Form Is Issued When No Tax Is Owed

Plan administrators must file Form 1099-R for any retirement plan distribution of $10 or more, taxable or not.¹ A trustee-to-trustee transfer counts as a distribution for reporting purposes because the money leaves the original account, even though it goes straight to the new plan without passing through your hands.

The underlying transaction is not taxed. Under 26 U.S.C. § 402(c)(6), an amount transferred directly between trustees is excluded from your gross income for the year of the transfer.² A direct rollover also avoids the mandatory 20% federal withholding that applies to eligible rollover distributions paid to you personally, so the full balance moves to the new account.³

The reporting rule applies whether you moved money from a 401(k), 403(b), or governmental 457(b) into an IRA or another employer plan.¹

How to Read Your 1099-R

Four boxes tell you whether your rollover was coded correctly.

Box 1 (Gross Distribution) shows the total that left the original account. For a direct rollover, this is the full balance transferred.
Box 2a (Taxable Amount) should read zero for a standard direct rollover to a traditional IRA or another pre-tax employer plan. Zero signals to the IRS that no portion is currently taxable.
Box 5 (Employee Contributions) shows any after-tax (non-Roth) amount in the account. That figure is your cost basis, which you can recover tax-free when you eventually draw from the new account.
Box 7 (Distribution Code) is the identifier that matters most. Code G means a direct rollover to an eligible retirement plan. Code H appears instead when the rollover moved money from a designated Roth account in an employer plan to a Roth IRA.⁴

If the code is wrong, or if Box 2a shows a taxable amount that doesn’t match your transaction, contact the plan administrator and request a corrected form. An incorrect 1099-R can prompt an automated IRS notice proposing tax you do not actually owe.

When a Direct Rollover Is Taxable: Roth Conversions

Moving pre-tax money directly from a traditional 401(k), 403(b), or governmental 457(b) into a Roth IRA is a conversion, and the transferred amount is taxable income for the year.⁵ The form still shows the full amount in Box 1 and Code G in Box 7, but Box 2a will show the taxable portion rather than zero.¹

A conversion from a traditional IRA to a Roth IRA uses different codes: Code 2 if you are under 59½, Code 7 if you are 59½ or older.⁴ Because no withholding is taken from a direct trustee-to-trustee conversion, you may need to make estimated tax payments or adjust your paycheck withholding to cover the bill.

Inherited Accounts

Rollover rules narrow for inherited accounts. A surviving spouse who rolls inherited plan assets directly into their own IRA or employer plan sees the standard Code G. A non-spouse beneficiary can only do a direct rollover into an inherited IRA, and Box 7 will show both Code 4 (death) and Code G. If a designated Roth account rolls into an inherited Roth IRA, the codes are 4 and H.¹

How to Report It on Your Return

Even though a direct rollover is not taxable, you must report it. Which line you use on Form 1040 depends on the source of the distribution:

For an employer plan (401(k), 403(b), governmental 457(b)), enter the Box 1 amount on Line 5a and the taxable amount on Line 5b. For a standard direct rollover, Line 5b is zero.⁶
For an IRA distribution, use Line 4a for the gross amount and Line 4b for the taxable amount.⁶

Next to Line 5b (or 4b for IRA distributions), write “Rollover.” That annotation tells the IRS the distribution qualifies for tax-deferred treatment. If you did a Roth conversion, the taxable amount goes on the same lines, and you will owe tax on it.

If Your 1099-R Is Late, Wrong, or Missing

Plan administrators must send the 1099-R by January 31 of the year after the distribution.⁷ A rollover done in 2025 should produce a form by January 31, 2026, with the deadline shifting to the next business day if it falls on a weekend or holiday.

If the form has not arrived, start with the plan administrator. If you still don’t have it by the end of February, the IRS recommends calling 800-829-1040. If the filing deadline is close and the form is still missing, you can file using Form 4852 as a substitute, estimating the distribution and any withholding from your own records. If the real 1099-R arrives later and the figures differ, file Form 1040-X to amend.⁸

Forgetting to report a rollover creates its own problem. When the IRS receives a 1099-R that your return doesn’t reflect, automated matching flags the gap and you generally receive a CP2000 notice proposing tax on the unreported amount.⁹ Respond by the date on the notice with documentation showing the distribution was a direct rollover. If you agree the rollover simply wasn’t reported and nothing else changes, follow the notice instructions; an amended return is usually unnecessary.

Why Code G Matters: Direct vs. Indirect Rollovers

Both direct and indirect rollovers produce a 1099-R, but the codes and consequences diverge. In a direct rollover, funds move trustee to trustee, and Code G (or Code H for designated Roth-to-Roth IRA transfers) signals to the IRS that the transfer was non-taxable by design. In an indirect rollover, the plan pays you and you have 60 days to redeposit the funds into another eligible account.³ An indirect rollover typically shows Code 1 or Code 7 depending on your age, without the G that tells the IRS it was rollover-bound.

The practical stakes explain why plan participants often prefer direct rollovers. The 20% mandatory withholding applies to indirect rollovers, so you’d need to replace that 20% from other funds to roll over the full balance. Missing the 60-day window turns the whole distribution into taxable income and can add a 10% early withdrawal penalty if you’re under 59½. Direct trustee-to-trustee transfers also sidestep the one-per-year limit that applies to IRA-to-IRA indirect rollovers, so you can complete multiple direct rollovers in the same year without penalty.¹⁰

1
Internal Revenue Service. Instructions for Forms 1099-R and 5498
2
Office of the Law Revision Counsel. 26 U.S. Code 402 – Taxability of Beneficiary of Employees Trust
3
Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions
4
Internal Revenue Service. 2025 Instructions for Forms 1099-R and 5498
5
Internal Revenue Service. Topic No. 413, Rollovers From Retirement Plans
6
Internal Revenue Service. 2025 Instructions for Form 1040
7
Internal Revenue Service. Publication 1099, General Instructions for Certain Information Returns
8
Internal Revenue Service. Topic No. 154, Form W-2 and Form 1099-R (What to Do if Incorrect or Not Received)
9
Internal Revenue Service. Understanding Your CP2000 Series Notice
10
Internal Revenue Service. Announcement 2014-32, Application of One-Per-Year Limit on IRA Rollovers