Form 1099-R Instructions – CLIENT PORTAL

The following is a general guide only

Check with your CPA if the following is applicable to you, and if so, that your 1099-R is completed correctly
Review the IRS instructions for more information:

Do I need to file a 1099-R?

Only if you made a “designated distribution” from your Solo 401k for the taxable year

File Form 1099–R for each person to whom you have made a designated distribution or are treated as having made a distribution of $10 or more from a profit–sharing or retirement plan. (IRS)

Some examples of “designated distributions” from your Solo 401k:

Roth conversions within your Solo 401k
Distributions: personal distributions, RMDs
Direct rollovers from your Solo 401k to another retirement account, like an IRA

Form 1099-R is typically not required for investments of the Solo 401k because those investments belong to the Solo 401k. They are not distributions from the Solo 401k.

Who files a 1099-R?

You are responsible for filing Form 1099-R, if applicable, for your Solo 401k

When is the deadline to file a 1099-R?

There are two deadlines because copies of the form must be filed with two parties:

The payee/recipient copy should be given or mailed to the recipient by January 31st

Since you are the recipient, this deadline can be satisfied by completing a Copy B of the form and keeping it in your file.

The electronic copy should be filed with the IRS by March 31st

You will need your CPA or a filing service to assist with the electronic filing with the IRS.

How do you file a 1099-R?

The Solo 401k is issuing the 1099 to the Participant for the “designated distribution”

Payer: your Solo 401k
Payer’s TIN: the EIN of your Solo 401k
Recipient: you
Recipient’s TIN: your SSN

The other sections of the 1099-R are based on the type of event, the type of funds, your age at the date of the event, etc.

Examples of specific events

Roth conversion of pre-tax funds

Box 1: fill in amount
Box 2a: fill in same amount
Box 7: G

IRS instructions include a section on this (“For a direct rollover of a distribution from a section 401(k) plan…to a designated Roth account in the same plan”), typically around page 6.

Roth conversion of pre-tax funds example

Roth conversion of after-tax contribution

Mega backdoor Roth within the Solo 401k

Box 1: fill in amount
Box 2a: 0 (if Roth conversion was done immediately after contribution; otherwise, there will be a non-taxable/basis amount and a taxable/earnings amount)
Box 5: fill in amount of after-tax contribution
Box 7: G

Roth conversion of after-tax contribution example

Distribution (early or normal) of pre-tax funds

Your age at the time of this distribution determines the code in Box 7. If your age at the distribution was before the retirement age of 59.5, this would be an early distribution. If your age at the distribution was after the retirement age of 59.5, this would be a normal distribution.

Taxes are required to be withheld from all distributions: