The IRS recently released a draft version of the 2018 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance, Contracts, etc. This form is used to report income from a number of sources related to retirement and other qualified plans.
There are number of changes in this draft version of the form, which are as follows:
- “Date of Payment” is a new box on the form, adjacent to the “Account Number” box.
- This box shows the date of payment for reportable death benefits under Section 6050Y.
- New instructions were also added to the “Instructions for Recipients” for this box.
- Under “Instructions for Recipient”, the “Qualified Plans” section is now known as “Qualified Plans and Section 403(b) plans”.
- Under “Instructions for Recipient”, Box 1 instructions add language for reportable death benefits.
- If Code C is shown in Box 7, Box 1 amounts are a receipt of reportable death benefits that is taxable in part.
- Under “Instructions for Recipient”, Box 5 adds language for life insurance contracts under Section 6050Y.
- Box 5 will now also account for investments in a life insurance contract reportable under Section 6050Y.
- Under “Instructions for Recipient”, Box 7 has two new codes:
- Code C: Reportable death benefits under Section 6050Y;
- Code M: Qualified plan loan offset.
To review these updates in full, please click here.
About the Author
Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.More Content by Paul Ogawa