[10499]
November 18, 1998
TO: PENSION MEMBERS No. 69-98
PENSION OPERATIONS ADVISORY COMMITTEE No. 62-98
TRANSFER AGENT ADVISORY COMMITTEE No. 76-98
RE: IRS GUIDANCE ON FORM 1099-R CODES FOR ROTH IRAs
______________________________________________________________________________
The Internal Revenue Service has released Announcement 98-106 describing changes to codes
for Roth IRAs on Form 1099-R. According to this announcement:
(1) For 1998 Form 1099-R, "Code K" is now optional, and payers may choose to
use "Code J" for all distributions from a Roth IRA or a Roth conversion IRA.
(2) For 1999 Form 1099-R, "Code K" will be eliminated. "Code J" will be changed
to indicate "Distribution from a Roth IRA" and will be used to report any
distribution from a Roth IRA or a Roth conversion IRA.
(3) For 1999 Form 1099-R, a new "Code R" will added to indicate "Recharacterized
IRA contribution" to identify a recharacterization of an IRA contribution.
Russell G. Galer
Senior Counsel
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