Form 1099-R reports payouts from a pension, annuity, IRA, retirement or profit-sharing plan, or insurance contract. As of October 2026, the payer files one for each person who received a distribution of $10 or more, and the code in box 7a tells the IRS what kind of payout it was: early, normal, a rollover, a death benefit and so on.
If you took a withdrawal from a 401(k) or an IRA, rolled a plan into a new account or inherited one, you'll get a 1099-R from the plan or custodian. If you run a small business plan or act as a trustee, you're on the other side: you're the one who has to issue it. The rules below come from the IRS's 2026 instructions for Forms 1099-R and 5498.
Who files Form 1099-R
The payer does. The instructions list the payouts it covers: profit-sharing and retirement plans, individual retirement arrangements (IRAs), annuities, pensions, insurance contracts, survivor income benefit plans, permanent and total disability payments under life insurance contracts and charitable gift annuities. Reportable disability payments made from a retirement plan go on a 1099-R too.
The recipient doesn't file it with anything. You use the figures on your own return and keep the form with your records.
The boxes that matter most
| Box | What it shows | What to check |
|---|---|---|
| 1 | Gross distribution before any tax was withheld | Includes direct rollovers and Roth IRA conversions, so a big number here isn't always taxable |
| 2a | Taxable amount | A direct rollover is reported with -0- here |
| 2b | Taxable amount not determined / total distribution | Ticked when the payer can't work out the taxable part |
| 4 | Federal income tax withheld | Carry this to your return as tax already paid |
| 7a | Distribution code(s) | The code decides whether an early-withdrawal tax may apply |
| 7b | IRA/SEP/SIMPLE checkbox | Tells you the payout came from one of those accounts |
Box 1 trips up a lot of people because it shows the whole payout, including amounts that went straight into another retirement account. Look at box 2a and the code before you decide what you owe.
Box 7 distribution codes in plain English
| Code | Meaning |
|---|---|
| 1 | Early distribution, no known exception (the participant hasn't reached age 59½) |
| 2 | Early distribution, exception applies (for example a Roth IRA conversion or an IRS levy) |
| 3 | Disability |
| 4 | Death, used whatever the participant's age when a beneficiary is paid |
| 7 | Normal distribution, generally when the participant is at least 59½ |
| G | Direct rollover and direct payment |
| H | Direct rollover of a designated Roth account distribution to a Roth IRA |
| J | Early distribution from a Roth IRA, no known exception |
| L | Loans treated as deemed distributions |
| Q | Qualified distribution from a Roth IRA |
| S | Early distribution from a SIMPLE IRA in the first 2 years, no known exception |
Code 2 isn't only about ages. The IRS lists cases such as a payout from a qualified plan after you separate from service in or after the year you reach 55, a series of substantially equal periodic payments, or a permissible withdrawal from an eligible automatic contribution arrangement. If your form says code 1 and you think one of those applies, check the exception rules before you file: code 1 just means the payer didn't know whether an exception applied.
One detail people miss: code 1 must be used even for someone aged 59½ or older if they modify a series of substantially equal periodic payments before the end of the 5-year period that began with the first payment.
Rollovers and the 20% withholding rule
A direct rollover, where the plan pays the new plan or IRA itself, is reported in box 1 with -0- in box 2a and code G. No federal income tax is withheld on it.
If any part of an eligible rollover distribution is paid to you instead, the plan must withhold 20% of the taxable part paid to you. You can't claim an exemption from that 20%, though you can ask for more to be withheld on Form W-4P. Part paid to you and part rolled over? The plan prepares two Forms 1099-R.
The instructions also cover small balances: involuntary distributions of more than $1,000 but not more than $7,000 from a qualified plan generally have to go to an IRA in a direct rollover unless the participant chooses otherwise. Those dollar limits are as of October 2026.
When Form 1099-R is due
- Recipients get their copy by January 31 for most information returns, which is the date Pub. 1099 gives for payee statements.
- Paper filing with the IRS for 2025 forms was due by March 2, 2026, sent with Form 1096.
- E-filing with the IRS was due by March 31, 2026.
- If you file 10 or more information returns in a year, counting all types together, you must e-file.
- If a due date falls on a weekend or legal holiday, the next business day counts as on time.
If you're the payer and you also send 1099-NEC or 1099-MISC forms, our guide to Form 1096 explains the paper summary that travels with them.
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What to do when your 1099-R looks wrong
- Check box 1 against your plan statement and the date of the payout.
- Check the code in box 7a: a rollover should show G (or H for Roth to Roth IRA), not 1 or 7.
- Ask the payer for a corrected form. The IRS tells payers to correct an error as soon as possible once they find it.
- Don't change the figures yourself on your return without a corrected form or a clear record of why.
If tax wasn't withheld and you owe a lot on a large withdrawal, it's worth looking at estimated tax payments for the rest of the year.
The verdict
Read box 7a before anything else. That one code tells you whether the IRS sees an early withdrawal, a normal payout or a rollover, and it's the box I'd check first on any 1099-R. If a rollover arrives coded as cash, get it corrected before you file: it's far easier than explaining it later.
Frequently asked questions
Who sends Form 1099-R?
The plan administrator, insurer, IRA trustee or custodian that made the distribution. It files one for each person who received $10 or more.
Is everything in box 1 taxable?
No. Box 1 is the gross distribution and includes direct rollovers and Roth conversions. Box 2a shows the taxable amount, and a direct rollover shows -0- there.
What does code 7 mean on a 1099-R?
Code 7 is a normal distribution, generally from a plan or traditional IRA when the participant is at least 59½.
What does code G mean on a 1099-R?
Code G is a direct rollover or direct payment from a plan to another eligible retirement plan or IRA.
Why was 20% withheld from my retirement payout?
If any part of an eligible rollover distribution is paid to you rather than rolled over directly, the plan must withhold 20% of the taxable part, and you can't claim an exemption from it.
When should I receive my 1099-R?
Payee statements are due by January 31 for most information returns, so expect it around then.
