Pensions, IRAs, and Form 1099-R: records to prepare

What Form 1099-R reports

Form 1099-R is used for many distributions from pensions, annuities, retirement plans, and IRAs. The amount on the form does not always mean the entire distribution is taxed the same way. Account type, distribution code, and transaction facts matter.

Gather every Form 1099-R for the year, even if the money was immediately moved to another retirement account or you believe the transaction is nontaxable.

Rollovers and Roth conversions

A direct or indirect rollover and a conversion to a Roth IRA may require separate reporting. Keep transfer confirmations, transaction dates, and records from the receiving account.

If you received part of a distribution personally and later deposited it into another account, flag that separately. Tax treatment follows the transaction facts, not only the ending account balance.

Form 8606 and IRA basis

Form 8606 is used for items including nondeductible traditional IRA contributions, distributions when an IRA has basis, certain Roth conversions, and Roth IRA distributions.

If Form 8606 was filed in prior years, bring those copies. Missing basis history can cause previously taxed money to be treated incorrectly as taxable again.

What to prepare

Gather Forms 1099-R, Forms 5498 if available, prior Forms 8606, rollover or conversion confirmations, and IRA contribution records. For an unusual transaction, include the financial institution statement or letter showing dates and amounts.