1 Institute Memorandum to Pension Members No. 67-96, dated December 26, 1996.
March 6, 1997
TO: PENSION MEMBERS No. 12-97
PENSION OPERATIONS ADVISORY COMMITTEE No. 7-97
AD HOC COMMITTEE ON SIMPLE PLANS
RE: REVISED FORMS 1099-R AND 5498 ADDRESS SIMPLE IRA REPORTING
______________________________________________________________________________
The Internal Revenue Service has released revised Forms 1099-R and 5498. The 1997
versions of these forms, attached, have been revised for SIMPLE reporting. Trustees must
report distributions from a SIMPLE account on Form 1099-R and contributions to a SIMPLE
account on Form 5498.
With regard to Form 1099-R, early distributions from a SIMPLE IRA must be reported in
Box 7 of the form. The IRS has indicated in previous guidance that a financial institution may
rely on its own records and is not required to take into account other sources of information
with regard to determining if the two-year holding requirement has been satisfied. See IRS
Notice 97-6, Q&A I-5.1
With regard to Form 5498, regular contributions are reported in Box 1 and rollover
contributions are reported separately in Box 2.
We will keep you informed of developments.
Russell G. Galer
Assistant Counsel - Pension
Attachments (in .pdf format)