IRS Releases 2018 Instructions for Forms 1099-R and 5498

July 27, 2018 Adam Rivera

The IRS has released the 2018 Instructions for Forms 1099-R and 5498. Form 1099-R is used to report distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, and insurance contracts to the IRS. Form 5498 is used to report IRA contribution information to the IRS.

There are a number of changes from the previous revision:

Overall Changes

  • A conversion of a traditional IRA to a Roth IRA, and a rollover from any eligible retirement plan to a Roth IRA, made after December 31, 2017, cannot be recharacterized as having been made to a traditional IRA
  • Special rules apply to retirement plan distributions made to employees affected by certain natural disasters that occurred in 2016 and 2017

Changes to Form 1099-R Instructions

  • A new box has been added to show the date of a payment of reportable death benefits and added instructions to the recipient copy
  • New distribution codes for Box 7 (Code C and Code M)
  • New instructions for plan loan offsets

Changes to Form 5498 Instructions

  • New rollover code (Code PO)
  • Changes to Box 13c
    • For participants who have certified that the rollover contribution is late because one or more of the circumstances listed in section 3.02(2) of Rev. Proc. 2016-47, enter “SC.

To view the new instructions, please click here.

About the Author

Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.

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