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:
- 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.