Form 1099-R

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What is the Purpose of IRS Form 1099-R in Regard to My Retirement Accounts?

IRS Form 1099-R serves as a critical document for reporting distributions from your retirement accounts, such as 401(k)s and IRAs. Here's what you need to know:


What is the IRS Form 1099-R: Form 1099-R is the mechanism used to report various distributions from your retirement accounts. These distributions may include withdrawals, rollovers, conversions, and more. It provides essential information that the Internal Revenue Service (IRS) requires to assess your tax liability related to retirement funds.


Digital Trust's Role: As the custodian of your IRA, Digital Trust plays a vital role in this process. We furnish you with a copy of your Form 1099-R through the secure Document Center. Moreover, we diligently file the form with the IRS, ensuring compliance with IRS regulations. This filing typically takes place no later than January 31st of each year.


Your Copy for Tax Purposes: The copy of Form 1099-R provided to you is instrumental for your records and tax obligations. It is essential to share this document with your CPA or tax advisor as they assist you in preparing and filing your tax returns. Accurate reporting of retirement account distributions is crucial for a smooth tax filing process.


No Distributions, No 1099-R: If you did not take any distributions from your retirement account during the calendar year, you will not receive a Form 1099-R. This means that the issuance of this form is contingent on actual distribution activity within your account.


For a comprehensive understanding of the values and codes appearing on the 1099-R form, we recommend referring to the IRS resources, which offer detailed explanations and guidance on this critical tax document.