What form is used to report corrective distributions?

The form used to report corrective distributions is the 1099-R. This form is specifically designed for reporting distributions from retirement accounts, including Individual Retirement Accounts (IRAs) and qualified retirement plans such as 401(k)s. When a corrective distribution occurs, usually in the context of excess contributions or failed compliance testing, it is essential for the plan administrator to report this distribution to both the IRS and the individual receiving the funds. The 1099-R form includes necessary information such as the amount distributed, the reason for the distribution, and any applicable tax withholding.

The other listed forms serve different purposes. The W-2 is utilized to report wages and salary paid to employees, capturing taxable income and withholdings. Form 1040 is the individual income tax return form used by taxpayers to report their annual income and calculate their tax liability. Form 5500 is used to report information about employee benefit plans, including annual financial reports, but does not pertain to individual corrections like corrective distributions. Each form has distinct applications that do not overlap with the specific reporting requirements of corrective distributions.