[11635]
February 15, 2000
TO: PENSION MEMBERS No. 13-00
PENSION OPERATIONS ADVISORY COMMITTEE No. 12-00
TRANSFER AGENT ADVISORY COMMITTEE No. 9-00
RE: IRS RELEASES FORMS YEAR 2000 1099-R AND 5498 WITH
INSTRUCTIONS
______________________________________________________________________________
The Internal Revenue Service recently released Year 2000 Forms 1099-R and 5498, with
accompanying instructions. Changes to the forms and instructions are as follows:
* The IRS will provide separate general and specific instructions for each Year 2000 Form,
including Forms 1099, 1098, 5498 and W-2G. The IRS will continue to make available
all instructions to these forms in one booklet, however.
* Recent legislation repealed the 5-year tax option for lump-sum distributions. Therefore,
the “5-or” was deleted from Code A under Box 7 of Form 1099-R. The 10-year tax
option is still available for participants and beneficiaries born before 1936.
* Recent legislation excludes a distribution from a qualified plan due to an IRS levy under
section 6331 from the early distribution penalty under section 72(t). Therefore, payors
should use Code 2, if appropriate, in box 7 on Form 1099-R for such a distribution.
* For 2000, payors may continue to report IRA recharacterizations and Roth conversions
with the same trustee on Forms 1099-R and 5498 using a reasonable alternate method.
Copies of Year 2000 Forms 1099-R and 5498, with instructions are attached.
Kathryn A. Ricard
Associate Counsel
Attachment
Note: Not all recipients receive the attachment. To obtain a copy of the attachment referred to in this Memo, please call the
ICI Library at (202) 326-8304, and ask for attachment number 11635. ICI Members may retrieve this Memo and its
attachment from ICINet (http://members.ici.org).