[12758]
October 19, 2000
TO: PENSION MEMBERS No. 50-00
PENSION OPERATIONS ADVISORY COMMITTEE No. 75-00
OPERATIONS COMMITTEE No. 27-00
TRANSFER AGENT ADVISORY COMMITTEE No. 53-00
TAX COMMITTEE No. 44-00
RE: IRS ANNOUNCES CODE CHANGES FOR IRAS ON 2001 FORM 1099-R
The Internal Revenue Service has published Announcement 2000-86, which advises
payers making distributions from Individual Retirement Accounts (IRAs) of changes to
distribution codes entered in Box 7 of the 2001 Form 1099-R. These changes correspond to
guidance issued earlier this year (Notice 2000-30)1 regarding reporting recharacterizations and
reconversions occurring after 2000.
Specifically, the announcement adds a Code N for reporting a recharacterized
contribution made for 2001 and indicates that Code R is to be used to report a recharacterized
IRA contribution made for 2000.
The announcement also indicates that because only two distributions codes can be
entered on Box 7 of Form 1099-R, other changes were necessary. Specifically, Code J is changed
to report an early distribution from a Roth IRA, no known exception; a new Code T is added to
report a Roth IRA distribution, exception applies.
Russell G. Galer
Senior Counsel
Attachment
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Attachment (in .pdf format)
1 See Institute Memorandum to Pension Members No. 30-00 and Pension Operations Advisory Committee No. 39-00,
dated June 5, 2000.