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.
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