The IRS released a revised Form 1099-R for tax year 2020. The Form 1099-R reports distributions from pensions, annuities, IRAs, and other retirement sources. The 2020 instructions for Form 1099-R were updated to include provisions from the Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE Act”), which permits a retirement distribution of up to $5,000, that is exempt from the 10% early distribution tax and can be repaid for qualified birth or adoption expenses.
The 2020 Form 1099-R has also been updated by numbering the FATCA filing requirement, Box 12, and the Date of Payment, Box 13, resulting in the succeeding boxes to be renumbered accordingly. In prior years, these boxes were not numbered. See example of the 2020 Form 1099-R below.
The deadline for filing the 2020 Form 1099-R with the IRS is March 1, 2021, for paper filings, and March 31st for electronic filings. The IRS requires electronic filing of Forms 1099-R if more than 250 forms are being filed. Copies must be distributed to plan participants and beneficiaries by February 1, 2021.