Form 1099-R is an IRS tax document that a retirement plan must distribute when there is a taxable event on a participant’s account. The form reports information to the federal government regarding retirement benefits paid and amounts withheld for income tax. If a taxable event occurred within your retirement plan for 2023, you will be provided with Form 1099-R in early 2024. This form is necessary when preparing your 2023 individual income tax returns.
What qualifies as a taxable event?
A qualifying taxable event occurs when a transaction results in a tax liability owed to the federal government. Some examples of taxable events are:
- A full, partial or periodic distribution from your account
- A rollover of funds, noting that not all rollovers are a taxable event
- A conversion of pre-tax funds to a Roth-IRA account
Conversely, contributions to your retirement accounts and plan loans are not considered taxable events and therefore, would not result in a Form 1099-R being issued.
Form 1099-R must be mailed by the plan administrator to the recipient by January 31st. It is recommended that recipients of this form wait at least 10-14 days after this date before reaching out to the plan administrator and requesting that the form be reissued. Be sure you have received all Forms 1099-R before finalizing your individual tax return for 2023.
For more information, contact Lisa Mrkall, CPA, MBA, at 716.633.1373 or lmrkall@tsacpa.com.
