A BNY MELLON COMPANY

Accounts & Services

Form 1099-R FAQs

Q: Why didn’t I receive a Form 1099-INT for my tax-exempt securities?
A: The information previously supplied on Form 1099-INT for tax-exempt (Box 8) and Alternative Minimum Tax (Box 9) is now being reported to the IRS on Form 1099-DIV (Boxes 10 and 11).
Q: Where is my Cost Basis Statement?
A: The data that used to be displayed on the Cost Basis Statement is now being reported in five sections on Form 1099-B.
Q: How are my IRA contributions being reported to the IRS?
A: If you are an IRA shareholder, Form 5498 will be mailed to you by the end of May 2014.

 

Q: I transferred my retirement account directly to another trustee during 2013. Why didn’t I receive a Form 1099-R?
A: Federal regulations do not require the filing of a Form 1099-R for direct transfers between trustees. In addition, direct transfers do not need to be reported on your federal personal income tax return.
Q: Why was money withheld from my traditional IRA distribution?
A: Federal law requires withholding on traditional IRA distributions at a rate of 10%. This serves as a prepayment of your federal income tax and is not to be confused with any IRS penalties for premature withdrawals. Please contact Dreyfus to elect not to have this withholding apply to future IRA distributions. Eligible distributions from qualified and other retirement plans are subject to mandatory federal withholding of 20% unless directly rolled over to an IRA or other retirement plan.
Q: Some of the contributions previously made to my traditional IRA account have been nondeductible contributions. How do I determine how much of my 2013 distributions are taxable?
A: In order to determine the taxable amount of your 2013 distributions received from your traditional IRA, you must complete Form 8606 (Nondeductible IRAs), Part I. Nondeductible contributions to a traditional IRA are also reportable on Form 8606, Part I.

Q: During 2013, I converted my Dreyfus traditional IRA account to a Dreyfus Roth IRA account. Why is this transfer included on my 2013 Form 1099-R?
A: Federal regulations require the Custodian to report the converted amount as a taxable distribution in Box 2a on your Form 1099-R for tax reporting purposes. Form 8606 (Nondeductible IRAs) should be used to determine the taxable amount of this conversion to be entered on your Form 1040.

Q: Why is my rollover transaction from my IRA account reported on Form 1099-R?
A: All retirement account distributions are reportable to the IRS on Form 1099-R. If your IRA was rolled over into another IRA investment, that amount will also be reported to you and the IRS on Form 5498 (“IRA Contribution Information”), which is mailed in May for the prior calendar year.