Table of Contents
- Specific Instructions for Form 1099-R
- Designated Roth Account Distributions
- IRA Distributions
- IRA Revocation or Account Closure
- Deductible Voluntary Employee Contributions (DECs)
- Direct Rollovers
- Explanation to Recipients Before Eligible Rollover Distributions (Section 402(f) Notice)
- Transfers
- Corrective Distributions
- Excess Annual Additions Under Section 415
- Failing the ADP or ACP Test After a Total Distribution
- Loans Treated as Distributions
- Permissible Withdrawals Under Section 414(w)
- Missing Participants
- Corrected Form 1099-R
- Filer
- Beneficiaries
- Alternate Payee Under a Qualified Domestic Relations Order (QDRO)
- Nonresident Aliens
- Statements to Recipients
- Account Number
- Box 1. Gross Distribution
- Box 2a. Taxable Amount
- Box 2b. Taxable Amount not Determined
- Box 2b. Total Distribution
- Box 3. Capital Gain (Included in Box 2a)
- Box 4. Federal Income Tax Withheld
- Box 5. Employee Contributions/Designated Roth Contributions or Insurance Premiums
- Box 6. Net Unrealized Appreciation (NUA) in Employer's Securities
- Box 7. Distribution Code(s)
- Box 8. Other
- Box 9a. Your Percentage of Total Distribution
- Box 9b. Total Employee Contributions
- Boxes 10-15. State and Local Information
- Specific Instructions for Form 5498
- Alternative one.
- Alternative two.
- Electronic filing.
- Reporting to the IRS.
- Account Number
- Blank Box
- Box 1. IRA Contributions (Other Than Amounts in Boxes 2-4 and 8-10)
- Box 2. Rollover Contributions
- Box 3. Roth IRA Conversion Amount
- Box 4. Recharacterized Contributions
- Box 5. Fair Market Value of Account
- Box 6. Life Insurance Cost Included in Box 1
- Box 7. Checkboxes
- Box 8. SEP Contributions
- Box 9. SIMPLE Contributions
- Box 10. Roth IRA Contributions
- Box 11. Check if RMD for 2009
File Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., for each person to whom you have made a designated distribution or are treated as having made a distribution of $10 or more from profit-sharing or retirement plans, any IRAs, annuities, pensions, insurance contracts, survivor income benefit plans, permanent and total disability payments under life insurance contracts, charitable gift annuities, etc.
Also, report on Form 1099-R death benefit payments made by employers that are not made as part of a pension, profit-sharing, or retirement plan. See box 1 on page 7.
Reportable disability payments made from a retirement plan must be reported on Form 1099-R.
Generally, do not report payments subject to withholding of social security and Medicare taxes on this form. Report such payments on Form W-2, Wage and Tax Statement.
Generally, do not report amounts totally exempt from tax, such as workers' compensation and Department of Veterans Affairs (VA) payments. However, if part of the distribution is taxable and part is nontaxable, report the entire distribution.


An employer offering a section 401(k) or 403(b) plan may allow participants to contribute all or a portion of the elective deferrals they are otherwise eligible to make to a separate designated Roth account established under the plan. Contributions made under a section 401(k) plan must meet the requirements of Regulations section 1.401(k)-1(f) (Regulations section 1.403(b)-3(c) for a section 403(b) plan). Under the terms of the section 401(k) plan or section 403(b) plan the designated Roth account must meet the requirements of section 402A.


If a traditional or Roth IRA is revoked during its first 7 days (under Regulations section 1.408-6(d)(4)(ii)) or is closed at any time by the IRA trustee or custodian due to a failure of the taxpayer to satisfy the Customer Identification Program requirements described in section 326 of the U.S. Patriot Act, the distribution from the IRA must be reported. In addition, Form 5498, IRA Contribution Information, must be filed to report any regular, rollover, Roth IRA conversion, SEP IRA, or SIMPLE IRA contribution to an IRA that is subsequently revoked or closed by the trustee or custodian.
If a regular contribution is made to a traditional or Roth IRA that later is revoked or closed, and distribution is made to the taxpayer, enter the gross distribution in box 1. If no earnings are distributed, enter 0 (zero) in box 2a and Code 8 in box 7 for a traditional IRA and Code J for a Roth IRA. If earnings are distributed, enter the amount of earnings in box 2a. For a traditional IRA, enter Codes 1 and 8, if applicable, in box 7; for a Roth IRA, enter Codes J and 8, if applicable. These earnings could be subject to the 10% early distribution tax under section 72(t). If a rollover contribution is made to a traditional or Roth IRA that later is revoked or closed, and distribution is made to the taxpayer, enter in boxes 1 and 2a of Form 1099-R the gross distribution and the appropriate code in box 7 (Code J for a Roth IRA). Follow this same procedure for a transfer from a traditional or Roth IRA to another IRA of the same type that later is revoked or closed. The distribution could be subject to the 10% early distribution tax under section 72(t).
If an IRA conversion contribution is made to a Roth IRA that later is revoked or closed, and a distribution is made to the taxpayer, enter the gross distribution in box 1 of Form 1099-R. If no earnings are distributed, enter 0 (zero) in box 2a and Code J in box 7. If earnings are distributed, enter the amount of the earnings in box 2a and Code J in box 7. These earnings could be subject to the 10% early distribution tax under section 72(t).
If an employer SEP (simplified employee pension) IRA or SIMPLE (savings incentive match plan for employees) IRA plan contribution is made and the SEP IRA or SIMPLE IRA is revoked by the employee or is closed by the trustee or custodian, report the distribution as fully taxable.
For more information on IRAs that have been revoked, see Rev. Proc. 91-70, 1991-2 C.B. 899.
If you are reporting a total distribution from a plan that includes a distribution of DECs, file a separate Form 1099-R to report the distribution of DECs. Report the distribution of DECs in boxes 1 and 2a on the separate Form 1099-R. However, for the direct rollover (explained below) of funds that include DECs, a separate Form 1099-R is not required to report the direct rollover of the DECs.
You must report a direct rollover of an eligible rollover distribution. A direct rollover is the direct payment of the distribution from a qualified plan (including a governmental section 457(b) plan) or section 403(b) plan to a traditional IRA or other eligible retirement plan. For additional rules regarding the treatment of direct rollovers from designated Roth accounts, see Designated Roth accounts below. A direct rollover may be made for the employee, for the employee's surviving spouse, for the spouse or former spouse who is an alternate payee under a qualified domestic relations order (QDRO) or for a nonspouse designated beneficiary, in which case the direct rollover can only be made to an IRA. If the distribution is paid to the surviving spouse, the distribution is treated in the same manner as if the spouse were the employee. See Part V of Notice 2007-7 on page 395 of Internal Revenue Bulletin 2007-5 at www.irs.gov/pub/irs-irbs/irb07-05.pdf for guidance on direct rollovers by nonspouse designated beneficiaries.
An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the employee (including net unrealized appreciation (NUA)) from a qualified plan (including a governmental section 457(b) plan) or a section 403(b) plan except:
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One of a series of substantially equal periodic payments made at least annually over:
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The life of the employee or the joint lives of the employee and the employee's designated beneficiary,
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The life expectancy of the employee or the joint life and last survivor expectancy of the employee and the employee's designated beneficiary, or
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A specified period of 10 years or more.
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A required minimum distribution (under section 401(a)(9)). A plan administrator is permitted to assume there is no designated beneficiary for purposes of determining the minimum distribution.
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Elective deferrals (under section 402(g)(3)), employee contributions, and earnings on each returned because of the section 415 limits.
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Corrective distributions of excess deferrals (under section 402(g)) and earnings.
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Corrective distributions of excess contributions under a qualified cash or deferred arrangement (under section 401(k)) and excess aggregate contributions (under section 401(m))
and earnings. -
Loans treated as deemed distributions (under section 72(p)). But plan loan offset amounts can be eligible rollover distributions. See Regulations section 1.402(c)-2, Q/A-9.
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Section 404(k) dividends.
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Cost of current life insurance protection.
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Distributions to a payee other than the employee, the employee's surviving spouse, or a spouse or former spouse who is an alternate payee under a QDRO.
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Any hardship distribution.
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A permissible withdrawal under section 414(w).
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Prohibited allocations of securities in an S corporation that are treated as deemed distributions.
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Distributions of premiums for accident or health insurance under Regulations section 1.402(a)-1(e).
Amounts paid under an annuity contract purchased for and distributed to a participant under a qualified plan can qualify as eligible rollover distributions. See Regulations section 1.402(c)-2, Q/A-10.
Internal Revenue Bulletin 2005-3 at www.irs.gov/pub/irs-irbs/irb05-03.pdf.

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A rollover contribution to a Roth IRA from another IRA that meets the requirements of section 408(d)(3) or
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A rollover contribution to a Roth IRA from an eligible retirement plan (other than an IRA) that meets the requirements of section 408A(e)(2)(B).

For qualified plans, section 403(b) plans, and governmental section 457(b) plans, the plan administrator must provide to each recipient of an eligible rollover distribution an explanation using either a written paper document or an electronic medium (section 402(f) notice). The explanation must be provided no more than 90 days (as much as 180 days for plan years that begin after December 31, 2006) and no fewer than 30 days before making an eligible rollover distribution or before the annuity starting date. However, if the recipient who has received the section 402(f) notice affirmatively elects a distribution, you will not fail to satisfy the timing requirements merely because you make the distribution fewer than 30 days after you provided the notice as long as you meet the requirements of Regulations section 1.402(f)-1, Q/A-2. The electronic section 402(f) notice must meet the consumer consent requirements as provided in Regulations section 1.401(a)-21(b).
The notice must explain the rollover rules, the special tax treatment for lump-sum distributions, the direct rollover option (and any default procedures), the mandatory 20% withholding rules, and an explanation of how distributions from the plan to which the rollover is made may have different restrictions and tax consequences than the plan from which the rollover is made. The notice and summary are permitted to be sent either as a written paper document or through an electronic medium reasonably accessible to the recipient; see Regulations section 1.402(f)-1, Q/A-5.
For periodic payments that are eligible rollover distributions, you must provide the notice before the first payment and at least once a year as long as the payments continue. For section 403(b) plans, the payer must provide an explanation of the direct rollover option within the time period described above or some other reasonable period of time.
Notice 2002-3, which is on page 289 of Internal Revenue Bulletin 2002-2 at www.irs.gov/pub/irs-irbs/irb02-02.pdf, contains model notices that the plan administrator can use to satisfy the notice requirements.

The notice also has not yet been updated for the requirements of the Pension Protection Act of 2006.
Generally, do not report a transfer between trustees or issuers that involves no payment or distribution of funds to the participant, including a trustee-to-trustee transfer from one IRA to another, transfers from one section 403(b) plan to another, or for the purchase of permissive service credit under section 403(b)(13) or 457(e)(17). However, you must report:
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Recharacterized IRA contributions;
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Roth IRA conversions; and
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Direct rollovers from qualified plans (including governmental section 457(b) plans) and section 403(b) plans, including any direct rollovers from such plans that are qualified rollover contributions described in section 408A(e).
You must report on Form 1099-R corrective distributions of excess deferrals, excess contributions and excess aggregate contributions under section 401(a) plans, section 401(k) cash or deferred arrangements, section 403(a) annuity plans, section 403(b) salary reduction agreements, and salary reduction simplified employee pensions (SARSEPs) under section 408(k)(6). Excess contributions that are recharacterized under a section 401(k) plan are treated as distributed. Corrective distributions of an excess plus earnings are reportable on Form 1099-R for the year of the distribution regardless of when the distribution is taxable to the participant. Enter Code 8, P, or in some cases D, in box 7 (with Code B if applicable) to designate the distribution and the year it is taxable.
Use a separate Form 1099-R to report a corrective distribution from a designated Roth account.

If the excess and the earnings are taxable in 2 different years, you must issue two Forms 1099-R to designate the year each is taxable.
You must advise the plan participant at the time of the distribution of the year(s) in which the distribution is taxable and that it may be necessary to file an amended return for a prior tax year.
For more information about reporting corrective distributions see: the Guide to Distribution Codes on pages 11 and 12; Notice 89-32, 1989-1 C.B. 671; Notice 88-33, 1988-1 C.B. 513; Notice 87-77, 1987-2 C.B. 385; and the Regulations under sections 401(k), 401(m), 402(g), and 457.
You must report on Form 1099-R distributions made under Regulations section 1.415-6(b)(6)(iv) of elective deferrals or a return of employee contributions (and gains attributable to such elective deferrals or employee contributions) to reduce excess annual additions arising from the allocation of forfeitures, a reasonable error in estimating a participant's compensation, or a reasonable error in determining the amount of elective deferrals that may be made for an individual under the limits of section 415.
Such distributions are not eligible rollover distributions although they are subject to federal income tax withholding under section 3405. They are not subject to social security, Medicare, or Federal Unemployment Tax Act (FUTA) taxes. In addition, such distributions are not subject to the 10% early distribution tax under section 72(t).
You may report the distribution of elective deferrals (other than designated Roth account contributions) and employee contributions
(and gains
attributable to such elective deferrals and employee contributions) on the same Form 1099-R. However, if you made other distributions
during the year,
report them on a separate Form 1099-R. Because the distribution of elective deferrals (other than designated Roth account
contributions) is fully
taxable in the year distributed (no part of the distribution is a return of the investment in the contract), report the total
amount of the
distribution in boxes 1 and 2a. Leave box 5 blank, and enter Code E in box 7. For a return of employee contributions (or designated
Roth account
contributions) plus gains, enter the gross distribution in box 1, the gains attributable to the employee contributions (or
designated Roth account
contributions) being returned in box 2a, and the employee contributions (or designated Roth account contributions) being returned
in box 5. Enter Code
E in box 7. For more information, see Rev. Proc. 92-93, 1992-2
C.B. 505.
New regulations under section 415, effective for limitation years beginning after June 30, 2007, do not contain procedures for reducing excess annual additions. However, the correction and reporting procedures explained earlier can be used for correcting excess annual additions in 2008 under the Employee Plans Compliance Resolution System (EPCRS), as explained in Rev. Proc. 2006-27. For additional information, see Rev. Proc. 2006-27 which is on page 945 of Internal Revenue Bulletin 2006-22 at www.irs.gov/pub/irs-irbs/irb06-22.pdf.
A corrective distribution under the EPCRS to the participant of contributions to a section 403(b) plan (plus gains attributable to such contributions) that were in excess of the limits under section 415 is treated the same as corrective distributions of elective deferrals to satisfy the limits under section 415. It is taxable to the participant in the year of distribution as described above.
If you make a total distribution in 2008 and file a Form 1099-R with the IRS and then discover in 2009 that the plan failed either the section 401(k)(3) actual deferral percentage (ADP) test for 2008 and you compute excess contributions or the section 401(m)(2) actual contribution percentage (ACP) test and you compute excess aggregate contributions, you must recharacterize part of the total distribution as excess contributions or excess aggregate contributions. First, file a CORRECTED Form 1099-R for 2008 for the correct amount of the total distribution (not including the amount recharacterized as excess contributions or excess aggregate contributions). Second, file a new Form 1099-R for 2008 for the excess contributions or excess aggregate contributions and allocable earnings.
To avoid a late filing penalty if the new Form 1099-R is filed after the due date, enter in the bottom margin of Form 1096, Annual Summary and Transmittal of U.S. Information Returns, the words “Filed To Correct Excess Contributions.”
You must also issue copies of the Forms 1099-R to the plan participant with an explanation of why these new forms are being issued.
A loan from a qualified plan under sections 401(a) and 403(a) and (b), and a plan maintained by the United States, a state or political subdivision, or any of its subsidiary agencies made to a participant or beneficiary is not treated as a distribution from the plan if the loan satisfies the following requirements.
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The loan is evidenced by an enforceable agreement,
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The agreement specifies that the loan must be repaid within 5 years, except for a principal residence,
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The loan must be repaid in substantially level installments (at least quarterly), and
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The loan amount does not exceed the limits in section 72(p)(2)(A) (maximum limit is equal to the lesser of 50% of the vested account balance or $50,000).
Certain exceptions, cure periods, and suspension of the repayment schedule may apply.
The loan agreement must specify the amount of the loan, the term of the loan, and the repayment schedule. The agreement may include more than one document.
If a loan fails to satisfy 1, 2, or 3, the balance of the loan is a deemed distribution. The distribution may occur at the time the loan is made or later if the loan is not repaid in accordance with the repayment schedule.
If a loan fails to satisfy 4 at the time the loan is made, the amount that exceeds the amount permitted to be loaned is a deemed distribution.
or 415(c)(2)(B). For a deemed distribution that was reported on Form 1099-R but was not repaid, the deemed distribution does not increase the participant's basis. If a participant's accrued benefit is reduced (offset) to repay a loan, the amount of the account balance that is offset against the loan is an actual distribution. Report it as you would any other actual distribution. Do not enter Code L in box 7.
For permissible withdrawals from an eligible automatic contribution arrangement under section 414(w):
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The distribution (except to the extent the distribution consists of designated Roth contributions) are included in the employee's gross income in the year distributed;
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Report principal and earnings in boxes 1 and 2a except, in the case of a distribution from a designated Roth account, report only earnings in box 2a;
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The distribution is not subject to the 10% additional tax, indicated by reporting Distribution Code 2 in box 7; and
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The distribution must be elected by the employee no later than 90 days after the first elective contribution, as specified in Proposed Regulations section 1.414(w)-1(c)(2).
If the distribution is from a designated Roth account, enter Code B as well as Code 2 in box 7.
The IRS administers a letter-forwarding program that could help plan administrators contact missing retirement plan participants (or possibly their beneficiaries). To inform individuals of their rights to benefits under a retirement plan, the IRS will forward letters from plan administrators to the missing individuals if the administrators provide the names and social security numbers (SSNs) of the missing individuals. However, the IRS cannot disclose individuals' addresses or give confirmation of letter delivery. All undelivered letters will be destroyed. For further information, see Rev. Proc. 94-22, 1994-1 C.B. 608, or contact your IRS office.
If you filed a Form 1099-R with the IRS and later discover that there is an error on it, you must correct it as soon as possible. For example, if you transmit a direct rollover and file a Form 1099-R with the IRS reporting that none of the direct rollover is taxable by entering 0 (zero) in box 2a, and you then discover that part of the direct rollover consists of required minimum distributions under section 401(a)(9), you must file a corrected Form 1099-R. See part H in the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G or Pub. 1220, if filing electronically.
The payer, trustee, or plan administrator must file Form 1099-R using the same name and employer identification number (EIN) used to deposit any tax withheld and to file Form 945, Annual Return of Withheld Federal Income Tax.
If you make a distribution to a beneficiary, trust, or estate, prepare Form 1099-R using the name and TIN of the beneficiary, trust, or estate, not that of the decedent. If there are multiple beneficiaries, report on each Form 1099-R only the amount paid to the beneficiary whose name appears on the Form 1099-R, and enter the percentage in box 9a, if applicable.
Distributions to an alternate payee who is a spouse or former spouse of the employee under a QDRO are reportable on Form 1099-R using the name and TIN of the alternate payee. If the alternate payee under a QDRO is a nonspouse, enter the name and TIN of the employee. However, this rule does not apply to IRAs; see Transfer of an IRA to spouse on page 4.
If income tax is withheld under section 3405 on any distribution to a nonresident alien, report the distribution and withholding on Form 1099-R. Also file Form 945 to report the withholding. See the Presumption Rules in part S of the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G.
However, any payments to a nonresident alien from any trust under section 401(a), any annuity plan under section 403(a), any
annuity, custodial
account, or retirement income account under section 403(b), or any IRA account under section 408(a) or (b) are subject to
withholding under section
1441. Report the distribution and withholding on Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign
Persons, and Form 1042-S,
Foreign Person's U.S. Source Income Subject
to Withholding.
If you are required to file Form 1099-R, you must furnish a statement to the recipient. For more information about the requirement to furnish a statement to each recipient, see part M in the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G.

Form 1099-R.
The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1099-R.
Additionally, the
IRS encourages you to designate an account number for all Forms 1099-R that you file. See part L in the 2008 General Instructions
for Forms 1099,
1098, 5498,
and W-2G.
Enter the total amount of the distribution before income tax or other deductions were withheld. Include direct rollovers, IRA rollovers to accepting employer plans, premiums paid by a trustee or custodian for the cost of current life or other insurance protection, and the gross amount of any IRA distribution, including a recharacterization and a Roth IRA conversion. Also include in this box distributions to plan participants from governmental section 457(b) plans. However, in the case of a distribution by a trust representing certificates of deposit (CDs) redeemed early, report the net amount distributed. Also, see box 6 on page 9.
Include in this box the value of U.S. Savings Bonds distributed from a plan. Enter the appropriate taxable amount in box 2a. Furnish a statement to the plan participant showing the value of each bond at the time of distribution. This will provide him or her with the information necessary to figure the interest income on each bond when it is redeemed.
Include in box 1 amounts distributed from a qualified retirement plan for which the recipient elects to pay health insurance premiums under a cafeteria plan or that are paid directly to reimburse medical care expenses incurred by the recipient (see Rev. Rul. 2003-62 on page 1034 of Internal Revenue Bulletin 2003-25 at www.irs.gov/pub/irs-irbs/irb03-25.pdf). Also include this amount in box 2a.
In addition to reporting distributions to beneficiaries of deceased employees, report here any death benefit payments made by employers that are not made as part of a pension, profit-sharing, or retirement plan. Also enter these amounts in box 2a; enter Code 4 in box 7.

For section 1035 exchanges that are reportable on Form 1099-R, enter the total value of the contract in box 1, 0 (zero) in box 2a, the total premiums paid in box 5, and Code 6 in box 7.

Generally, you must enter the taxable amount in box 2a. However, if you are unable to reasonably obtain the data needed to compute the taxable amount, leave this box blank. Do not enter excludable or tax-deferred amounts reportable in boxes 5, 6, and 8.
For a direct rollover (other than a qualified rollover contribution) from a qualified plan (including a governmental section 457(b) plan) or section 403(b) plan, for a distribution from a conduit IRA that is payable to the trustee of or is transferred to an employer plan, for an IRA recharacterization, or for a nontaxable section 1035 exchange of life insurance, annuity, or endowment contracts, enter 0 (zero) in box 2a.
Notice 98-2.
on page 3.
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Box 1, $5,000 as the gross distribution;
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Box 2a, $300 as the taxable amount;
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Box 4, $60 ($300 x 20%) as the withholding on the earnings portion of the distribution;
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Box 5, $4,700 as the designated Roth contribution basis (nontaxable amount);
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Box 7, Distribution Code B; and
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The first year of the 5-taxable-year period in the box to the left of box 10.
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Box 1, $5,000 as the gross distribution;
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Box 2a, 0 (zero) as the taxable amount;
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Box 4, no entry;
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Box 5, $4,700 as the designated Roth contribution basis (nontaxable amount);
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Box 7, Distribution Code H; and
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The first year of the 5-taxable-year period in the box to the left of box 10.







