Form 1099-R for retirement account distributions

Taking money from your retirement accounts means you’ll receive Form 1099-R during the next tax season. If you’re planning ahead for next year’s taxes or Form 1099-R has landed in your mail box, we understand you may have questions.

H&R Block is here to help you understand your Form 1099-R so you can file your taxes confidently. Read and as we cover the basics of the 1099-R form and what it shows.  Then, we’ll help you outline how the form is used for your federal taxes.

What is a 1099-R?

A 1099-R form is a tax document that reports distributions from retirement accounts, pensions, annuities, or profit-sharing plans. Officially, the1099-R form is called the “Distributions From Pensions, Annuities, Retirement, or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.”

The IRS only requires Form 1099-R to be sent when $10 or more are distributed from the account but you could receive a form for a smaller amount.

What is Form 1099-R used for?

You use a Form 1099-R to file your taxes and report the total payout, the taxable portion, and any federal or state income tax withheld from any of the following account types:

• Annuity and pension payments, insurance contracts, survivor income benefit plans
  • Profit sharing and retirement accounts, including IRAs
  • Loans against pension plans
  • Charitable gift annuities

Do you have to pay taxes on a 1099-R?

You generally have to pay taxes on the withdrawals shown on a 1099-R if it is from a pre-tax account. Withdrawals showing on a 1099-R for Roth distributions, rollovers, or returns of after‑tax contributions may be partially or fully tax‑free. If you’re under 59½, you might also owe a 10% early withdrawal penalty unless an exception applies.

When is Form 1099-R sent?

It’s sent to you no later than January 31 after the calendar year of the retirement account distribution.

What info does Form 1099-R include?

This form includes information such as the amount you withdrew, how much is taxable (if that was determined), any taxes that were withheld, and a code that shows what type of distribution.

We’ve called out a few important box numbers that often drive tax questions.

• Box 1 reports the total amount of distribution from a retirement plan or annuity, this is the gross amount of dollars you received from the plan. It may be taxable or not depending on many factors.
• Box 2 reports the taxable amount of the distribution as reported by the payer. Thus, the retirement plan or annuity has determined what the amount to include in income is. This amount should be reported on line 4b or 5b of Form 1040.
• Box 4 reports the amount the payer withheld from a distribution; this amount is very important to you as it reports the amount of taxes you have already paid on the amount distributed.
• Box 7 is the distribution code, this describes the type of distribution the taxpayer took as known by the payer (see list below). The code will help to determine the taxability of the distribution. If the payer knows the distribution was a loan or a rollover, the distribution will be described as such by a code number or letter. The codes are described on the back on the 1099-R.

Box 7 1099-R distribution codes

Form 1099-R includes a form field where a code is used identify the type of distribution. This is indexed on Box 7.

• Code 1—Early distribution, no known exception (in most cases, under age 59½).
• Code 2—Early distribution, exception applies (under age 59½).
• Code 3—Disability.
• Code 4—Death.
• Code 5—Prohibited transaction.
• Code 6—Section 1035 exchange (a tax-free exchange of life insurance, annuity, qualified long-term care insurance, or endowment contracts).
• Code 7—Normal distribution.
• Code 8—Excess contributions plus earnings/excess deferrals (and/or earnings) taxable.
• Code 9—Cost of current life insurance protection.
• Code A—May be eligible for 10-year tax option (see Form 4972).
• Code B—Designated Roth account distribution. Note: If code B is in box 7a and an amount is reported in box 10, see the Instructions for Form 5329.
• Code C—Reportable death benefits under section 6050Y.
• Code D—Annuity payments from nonqualified annuities that may be subject to tax under section 1411.
• Code E—Distributions under Employee Plans Compliance Resolution System (EPCRS).
• Code F—Charitable gift annuity.
• Code G—Direct rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA. Also, a direct rollover of the entire balance of a Trump account to an ABLE account of the account beneficiary in the year the beneficiary reaches age 17.
• Code H—Direct rollover of a designated Roth account distribution to a Roth IRA or Roth SIMPLE IRA.
• Code J—Early distribution from a Roth IRA or Roth SIMPLE IRA, no known exception (in most cases, under age 59½).
• Code K—Distribution of traditional IRA assets not having a readily available FMV.
• Code L—Loans treated as distributions.
• Code M—Qualified plan loan offset.
• Code N—Recharacterized IRA contribution made for 2025 and recharacterized in 2025.
• Code P—Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2024 or a previous year.
• Code Q—Qualified distribution from a Roth IRA or Roth SIMPLE IRA.
• Code R—Recharacterized IRA contribution made for 2024 or a previous year and recharacterized in 2025.
• Code S—Early distribution from a SIMPLE IRA in first 2 years, no known exception (under age 59½).
• Code T—Roth IRA or Roth SIMPLE IRA distribution, exception applies.
• Code U—Dividend distribution from ESOP under section 404(k). Note: This distribution isn’t eligible for rollover.
• Code W—Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements.
• Code Y—Qualified charitable distribution (QCD) claimed by taxpayer under section 408(d)(8).

Do you have to report Form 1099 on your taxes?

Yes, you should report the information shown on Form 1099-R on your taxes.

How do you report Form 1099 on your taxes?

You’ll report amounts from Form 1099-R as ordinary income on line 4b and 5b of the Form 1040. If the form shows federal income tax withheld in Box 4, attach a copy – Copy B—to your tax return.

What happens if you don’t report your Form 1099 income?

If you receive a Form 1099-R and do not report the distribution on your tax return, the IRS will likely send you a CP2000, Underreported Income notice. This IRS notice will propose additional tax, penalties and interest on your distributions and any other unreported income.

Get help with reporting 1099-R form income

If you’re looking for help reporting your IRS Form 1099-R, H&R Block is here for you. Whether you file online or file with a tax pro, you can rest assured that we’ll help you get your max refund.*

*All tax situations are different. Not everyone gets a refund. See hrblock.com/guarantees for complete details.