IRS Form 1099-R: Distributions from Pensions & Annuities

What are the New Changes to Form 1099-R for the 2025 tax year?

For the 2025 tax year, the IRS has introduced a new reporting code for Qualified Charitable Distributions (QCDs) on Form 1099-R. A new Code “Y” has been added to Box 7 to identify distributions made directly from an IRA to a qualified charitable organization.

When using Code Y, payers must include one of the following additional codes:

• Code 7: for QCDs from non-inherited (normal distribution) IRAs.
• Code 4: for QCDs from inherited (death distribution) IRAs.
• Code K: for QCDs involving traditional IRA assets without a readily available fair market value (from either inherited
  or non-inherited IRAs).

This change helps clarify QCD reporting and improves the accuracy of information provided to both taxpayers and the IRS.

What is a Qualified Charitable Distribution (QCD)?

A Qualified Charitable Distribution (QCD) is a tax-free donation made directly from your IRA to a qualified charity by your IRA trustee. For more details, see Qualified charitable distributions (QCDs) in IRS Publication 590-B.

Who must file Form 1099-R?

Form 1099-R must be filed by the following entities who are responsible for filing this form:

• Retirement plan administrators
• Financial institutions
• Insurance companies
• Government agencies
• Employers

What are the Form 1099-R copies?

There are five different copies of the 1099-R Tax Forms that both payers and their recipients should be aware of:

• Copy A: This is the red copy that must be submitted to the IRS
• Copy 1: This is submitted to the State, City, or Local Tax Department
• Copy B: This copy is for the recipient to report Form 1099-R income on their federal tax return.
• Copy 2: This copy must be filed by the recipient with their state, city, or local income tax return
• Copy C: This copy is for the recipient’s records

What Information is required to file Form 1099-R?

To fill out Form 1099-R, you must have the following information on hand to ensure timely filing, this includes:

• The payer’s TIN, name, and address
• The recipient’s TIN, name, address, and account number ( if applicable)
• FATCA filing requirement
• Federal income tax withheld
• The gross distribution
• Capital gain
• Taxable amounts
• Employee contributions/designated Roth account contributions or Insurance Premiums
• Distribution codes
• The type of retirement accoun
• State/local information that includes tax withheld, state/local distribution, etc.

Click here to learn more about the Form 1099-R instructions.

When is the deadline to file 1099-R?

The deadline for e-filing Form 1099-R is March 31, 2026, and for paper filing, it is March 2, 2026. Recipient copies must be delivered by February 2, 2026.

To learn more about the 1099-R Deadline, Click here.

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Are there penalties for late filing of Form 1099-R?

If you do not file Form 1099-R by the deadline, the IRS will impose a late filing penalty ranging from $60 to $680 per form per form, depending on the size of your business and the days your return is overdue.

Avoid late filing penalties! Learn about key dates in our 1099-R Penalty guide.

How to file Form 1099-R for the 2025 Tax Year?

You have two options to file Form 1099-R with the IRS. You can mail or electronically file your 1099-R form.

However, the IRS recommends that filing Form 1099-R electronically is the easiest and most convenient way to file Form 1099-R. You must start with TaxBandits, an IRS-authorized e-file service provider, to e-file Form 1099-R. Just follow these simple steps to file 1099-R with TaxBandits:

• Step 1: Create an account with TaxBandits.
• Step 2: Select or add the business you are filing Form 1099-R.
• Step 3: Enter the required Form 1099-R details.
• Step 4: Review and transmit Form 1099-R to the IRS.

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