IRS Form 1099-R (Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.) (2021); IRS Form 5498 (IRA Contribution Information) (2021); Instructions for Forms 1099-R and 5498 (2021); General Instructions for Certain Information Returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, and W-2G) (2021)
The IRS has released the 2021 versions of Forms 1099-R and 5498, their combined instructions, and the general instructions that explain how to file these and various other IRS forms. Form 1099-R is used to report designated distributions from retirement plans, annuities, IRAs, and other sources. Form 5498 is used to report contributions to IRAs (including deemed IRAs within a qualified plan), and certain other IRA-related information, including fair market value and required minimum distributions. These versions of the forms will be filed with the IRS and furnished to distribution recipients and IRA owners and beneficiaries in 2022 for events occurring in 2021. Changes to the 2021 forms and instructions include—
Form 1099-R. Filing and distribution dates have been updated and the form’s reference to required minimum distributions has been updated to reflect that required beginning dates generally are now determined by when an individual attains age 72 rather than age 70-1/2.
Form 5498. Apart from date revisions, this form is essentially unchanged.
Instructions. The combined instructions have been revised to refer users to Revenue Procedure 2020-46, which updated the IRS guidance regarding when individuals can self-certify that a late rollover qualifies for a waiver of the 60-day requirement, and added a new reason for self-certification: The assets were previously distributed to a state’s unclaimed property fund (see our Checkpoint article). These instructions also remind users about the two new model safe harbor explanations for eligible rollover distributions that were provided in Notice 2020-62 (see our Checkpoint article).
General Instructions. The general instructions explain that the IRS might issue regulations this year that reduce the 250-return threshold for electronic filing of these forms. (The threshold is applied separately to each form.) If regulations are effective for 2021 forms filed in 2022, the lower threshold will be announced on the IRS website. The general instructions also note that the address of the Austin, Texas processing center for paper filings has changed. Finally, requests for an extension of the deadline for sending statements to recipients may now only be made by fax.
EBIA Comment: All qualified plan distributions of $10 or more in 2021 will have to be reported to the IRS on this version of Form 1099-R. The deadline for providing the 2021 Form 1099-R to plan participants and beneficiaries is January 31, 2022. Copy A must be filed with the IRS by February 28, 2022, for scannable paper filings, and by March 31, 2022, for electronic filings. Form 5498 for 2021 generally must be filed and provided by May 31, 2022, but some information (regarding fair market value and required minimum distributions) must be furnished by January 31, 2022. Copy A filings on paper must be prepared using the official printed versions of the forms obtained from the IRS. Attempts to file nonscannable photocopies of the posted forms may result in penalties. For more information, see EBIA’s 401(k) Plans manual at Sections VIII.G (“After-Tax and Deemed IRA Contributions”) and XIV.R (“Reporting Distributions on Form 1099-R”).
Contributing Editors: EBIA Staff.