Form 1099-R Simplified: How to Report Your 401(k) Distributions

Form 1099-R is the IRS document you’ll receive when you take money out of your 401(k), whether through retirement withdrawals, early distributions, or rollovers. In this article, we break down each box of the 1099-R so you know exactly what the numbers mean. You’ll learn about the difference between the gross distribution and the taxable amount, how tax withholding works, and what each distribution code means. We’ll also guide you on how to report this information correctly on your tax return, and how to avoid common mistakes that could lead to IRS penalties or overpayment. If you moved jobs, cashed out your retirement early, or started your required minimum distributions (RMDs), this guide will ensure you handle Form 1099-R the right way. Save time and frustration with this step-by-step explanation of one of the most important forms for retirement account holders.