A 1099-R is an IRS form reporting distributions of $10 or more from retirement accounts — pensions, annuities, 401(k)s, IRAs, and insurance contracts. The payer (your plan administrator or custodian) sends it to you and the IRS. It shows the gross distribution, the taxable portion, federal tax withheld, and a distribution code that determines how the money is taxed.

Do I have to report a 1099-R on my taxes?

Yes. The IRS receives a matching copy of every 1099-R, so you must report it on your return even if none of it is taxable. The taxable amount in Box 2a is added to your income; a direct rollover (Box 7 code G) is still reported but is generally not taxable, and qualified Roth distributions can be tax-free. Leaving it off can trigger an IRS notice.

Does a 1099-R mean you received money?

Usually, but not always. A 1099-R is issued for any reportable distribution of $10 or more — which includes cash you withdrew, but also direct rollovers, Roth conversions, and a retirement plan loan that defaulted and became taxable. So you may get one even though no check ever reached you. Box 7's distribution code shows which kind of event occurred.

What does the code in Box 7 of a 1099-R mean?

Box 7 holds a one- or two-character distribution code that defines the tax treatment. Common codes: 1 (early distribution, possible 10% penalty), 2 (early, exception applies), 7 (normal distribution), G (direct rollover), and B (designated Roth). Tax software uses this code to decide whether penalties or special rules apply to the distribution.

When should I receive my 1099-R?

Payers must send Form 1099-R by January 31 following the year of the distribution. If you took money out of a retirement account in the prior year and haven't received it by mid-February, contact the plan administrator or custodian. A copy is also filed with the IRS, so the amount must match what you report.

What's the difference between a 1099-R and a 5498?

A 1099-R reports money coming OUT of a retirement account (distributions), while Form 5498 reports money going IN (contributions, rollovers received, and year-end fair market value). You get a 1099-R when you withdraw or roll over funds; you get a 5498 when you contribute. They cover opposite sides of the same account.

Tax

Form 1099-R

Form 1099-R is an IRS information return that reports distributions of $10 or more from pensions, annuities, retirement or profit-sharing plans, IRAs, and insurance contracts. Plan administrators, IRA custodians, and annuity issuers send it to recipients and the IRS, showing the gross distribution, taxable amount, and a distribution code.

A payer must file Form 1099-R for each person to whom a distribution of $10 or more was made during the year, and must furnish your copy by January 31.

Source: IRS — About Form 1099-R

Written & maintained by the Granite team · Last updated June 2026

Overview

Form 1099-R is issued by whoever paid out the money: a pension or 401(k) plan administrator, an IRA custodian, an annuity issuer, or an insurance company. You receive a copy by January 31 for any year you took a distribution of $10 or more from a retirement account, and a matching copy goes to the IRS. The form covers withdrawals, rollovers, Roth conversions, required minimum distributions (RMDs), retirement plan loans that default and become taxable, and even certain pension or annuity payouts.

The single most important box is Box 7, the distribution code, which tells the IRS (and your tax software) how the distribution should be taxed — code 1 flags an early withdrawal that may owe a 10% penalty, code 7 is a normal distribution, and code G is a direct rollover. A 1099-R is not a 1099-INT or 1099-DIV (those report interest and dividends), not a W-2 (wages), and not a Form 5498 (which reports contributions going into an IRA, not distributions coming out).

When you’ll get your Form 1099-R

You took a withdrawal or distribution of $10 or more from a 401(k), 403(b), IRA, or other retirement plan
You received pension or annuity payments during the year
You did a direct rollover or a Roth conversion between retirement accounts
You took a required minimum distribution (RMD) after reaching RMD age
A retirement plan loan defaulted or you withdrew excess contributions, creating a taxable distribution
You took an early withdrawal before age 59½, which may trigger a 10% penalty

What’s on your Form 1099-R

These are the fields Granite reads and extracts automatically the moment you upload one.

Payer name & TIN: The plan administrator, IRA custodian, annuity issuer, or insurance company that paid the distribution, plus their federal Taxpayer Identification Number.
Recipient name & TIN (SSN): Your name and Social Security or Taxpayer ID number; the TIN is often partially masked for security.
Box 1 — Gross distribution: The total amount distributed to you before any taxes were withheld. This is the headline dollar figure on the form.
Box 2a — Taxable amount: The portion of the gross distribution that is actually taxable. It can be less than Box 1 (e.g. for a partial rollover or after-tax contributions).
Box 4 — Federal income tax withheld: How much federal tax the payer already withheld and sent to the IRS on your behalf — credited against what you owe.
Box 7 — Distribution code(s): A one- or two-character code that defines the tax treatment: 1 (early, may owe penalty), 7 (normal), G (direct rollover), B (designated Roth), and others. This drives how the distribution is taxed.
IRA/SEP/SIMPLE checkbox: A checkbox in Box 7's area marked when the distribution came from a traditional IRA, SEP, or SIMPLE account rather than an employer plan.
Account number: The payer's internal account number identifying which of your accounts the distribution came from; commonly masked.

How long to keep it

At least 7 years after you file the related tax return; keep records of nondeductible (after-tax) contributions and Roth basis permanently.

The standard 1099-R supports the income you reported, so it falls under the IRS three-to-seven-year audit window. But if the distribution involved after-tax basis, a rollover, or a Roth conversion, the supporting paper trail can matter decades later — when you eventually withdraw, you need to prove which dollars were already taxed. That's why the basis-related records outlive the ordinary retention rule.

How Granite handles your Form 1099-R

When you drop a 1099-R into Granite, it reads the form, recognizes it as a retirement distribution (not a 1099-INT or W-2), and extracts the payer, gross distribution (Box 1), taxable amount, federal tax withheld (Box 4), and the all-important Box 7 distribution code. It auto-files the form into your Tax {year} collection and groups it under the paying institution, so every distribution from the same plan sits together and surfaces instantly when you search "IRA distribution" or "pension."

FAQ

Form 1099-R: common questions

What is a 1099-R?: A 1099-R is an IRS form reporting distributions of $10 or more from retirement accounts — pensions, annuities, 401(k)s, IRAs, and insurance contracts. The payer (your plan administrator or custodian) sends it to you and the IRS. It shows the gross distribution, the taxable portion, federal tax withheld, and a distribution code that determines how the money is taxed.
Do I have to report a 1099-R on my taxes?: Yes. The IRS receives a matching copy of every 1099-R, so you must report it on your return even if none of it is taxable. The taxable amount in Box 2a is added to your income; a direct rollover (Box 7 code G) is still reported but is generally not taxable, and qualified Roth distributions can be tax-free. Leaving it off can trigger an IRS notice.
Does a 1099-R mean you received money?: Usually, but not always. A 1099-R is issued for any reportable distribution of $10 or more — which includes cash you withdrew, but also direct rollovers, Roth conversions, and a retirement plan loan that defaulted and became taxable. So you may get one even though no check ever reached you. Box 7's distribution code shows which kind of event occurred.
What does the code in Box 7 of a 1099-R mean?: Box 7 holds a one- or two-character distribution code that defines the tax treatment. Common codes: 1 (early distribution, possible 10% penalty), 2 (early, exception applies), 7 (normal distribution), G (direct rollover), and B (designated Roth). Tax software uses this code to decide whether penalties or special rules apply to the distribution.
When should I receive my 1099-R?: Payers must send Form 1099-R by January 31 following the year of the distribution. If you took money out of a retirement account in the prior year and haven't received it by mid-February, contact the plan administrator or custodian. A copy is also filed with the IRS, so the amount must match what you report.
What's the difference between a 1099-R and a 5498?: A 1099-R reports money coming OUT of a retirement account (distributions), while Form 5498 reports money going IN (contributions, rollovers received, and year-end fair market value). You get a 1099-R when you withdraw or roll over funds; you get a 5498 when you contribute. They cover opposite sides of the same account.

Sources

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