Many clients are calling with questions about tax forms 1099-R and 5498.
Remember, this is not accounting advice and we are unable to provide accounting advice but here is a quick overview of the forms.
What you need to do with the forms:
✅ Check form 1099-R Box 7 for correct distribution type. If Box 7 says Code G, and Box 4 is blank or “0”, you were not taxed and did not pay taxes on this account. This simply means you made a non-taxable rollover from one retirement account (TSP) to your new retirement account (IRA).
✅ Provide 1099-R to your tax preparer.
Form 1099-R
Shows withdrawals or rollovers you actually took during the tax year. Your tax preparer uses the 1099-R to file your return.
Box 7 Common Codes:
- Code 7 – Normal Distribution: Over age 59½; usually taxable.
- Code 1 – Early Distribution: Under 59½; may be subject to penalty.
- Code 2 – Early Distribution, Exception Applies: Under 59½, no penalty due to IRS exception.
- Code 4 – Death: Distribution paid to a beneficiary.
- Code G – Direct Rollover: Moved between retirement accounts; not taxable.
RMD Letter / Form 5498
You received this form in May 2025 if you rolled money into an IRA. It is for your records only — your tax preparer does not use this form. If you’re age 72 or older, Box 12a shows your RMD due date and Box 12b shows the RMD amount.
If you’re taking monthly payments from your IRA, you likely will have met your RMD and no further action is needed. Let us know if you’d like us to double-check your RMD.
