How to read your 1099-R and 5498

The Form 1099-R is required by the IRS for distributions received from individual retirement accounts (IRAs), such as with Robinhood Securities.

In conjunction with the Form 1099-R for distributions, you may also get a Form 5498 for contributions made into an IRA. If a Roth conversion is completed with Robinhood, you’ll get a 1099-R for the money that's leaving the Traditional IRA and a Form 5498 for the money that's moving into the Roth IRA. The IRS instructions for Forms 1099-R and 5498 have more details.

The following Form 1099-R and 5498 examples help explain the key information that’s included.

The following key information is included on a Form 1099-R:

1. Robinhood’s name, address, and taxpayer identification number (TIN): You’ll need Robinhood’s payer TIN for your tax return
2. Your account information, including your account number, document ID, address, and TIN: You’ll need your account number and document ID to import your 1099-R into your tax software provider
3. Gross distribution: Shows what you withdrew from your retirement account this tax year
4. Taxable amount: Shows the amount that could be taxable to you
5. Federal income tax withheld: Shows the amount that was withheld for federal taxes
6. State tax withheld: Shows the amount that was withheld for state taxes

The following key information is included on Form 5498:

1. Robinhood’s name, address, and taxpayer identification number (TIN)
2. Your account information, including your account number, document ID, address, and TIN: You’ll need your account number and document ID to import your 5498 into your tax software provider
3. IRA contributions: Shows the amount (other than amounts in Rollover contributions) of IRA contributions that were made from January 1, 2023 through April 15, 2024, designated for 2023
4. Rollover contributions: Shows the amount of rollover contributions that you received during 2023
5. Roth IRA conversion amount: Shows the amount converted from a traditional IRA to a Roth IRA in 2023
6. Recharacterized contributions: Shows the amount recharacterized from transferring any part of a contribution (plus earnings) from one type of IRA to another
7. Roth IRA contributions: Shows the amount contributed to a Roth IRA in 2023 and through April 15, 2024, designated for 2023
8. If checked, required minimum distribution (RMD) for 2024: If required to withdraw an RMD in 2024, this box will be checked. You can request an RMD calculation from us, if necessary

Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.

The Robinhood IRA is available to any of our US customers with a Robinhood brokerage account in good standing. Note, if you have a B-Notice, you won’t be able to open an IRA until your account restrictions are lifted.