IRS Form 1099-R is used to report distributions that occur from IRAs , qualified employer plans , 403(b) accounts and Governmental 457(b) plans.
A common misconception is that Form 1099-R should not be filed for distributions that are rolled over. If the distribution is timely and properly rolled over, the amount is still reported in your tax-return, However, it is reported as a nontaxable transaction. If the distribution was processed as a direct rollover, the payer is also required to indicate that the amount is nontaxable, because it was processed as a direct rollover. This is accomplished by inputting Code G’ in Box 7 of the Form 1099-R, and entering 0 (zero) in Box 2a.
