Annuity Distributions - Understanding Your 2025 Form 1099-R

Sep 19, 2026

Annuity distributions guidance explaining when a Form 1099-R is issued by Fidelity and how annuity distributions and related events—withdrawals, surrender, annuitized income payments, and 1035 exchanges—may trigger the reporting. The document breaks down key 1099-R fields, including recipient TIN truncation, Box 1 taxable distribution totals, Box 2a taxable amounts, Box 4 federal withholding, Box 7 distribution codes, and state tax boxes. It also addresses common questions such as online access, reporting requirements on federal returns, and withholding state changes.

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Annuity Distributions

When a Form 1099-R is issued

Key 1099-R sections and boxes

Frequently Asked Questions

Annuity Distributions Understanding Your 2025 Form 1099-R 2025 Form 1099-R Annuity Distribution Information Fidelity 1 is required to send a Form 1099-R whenever money has been distributed from an annuity contract. You may receive more than one Form 1099-R because the information on each form is limited to one contract, one distribution code, and one withholding state. Transactions that require a 1099-R to be issued may include: • Withdrawal(s) from your annuity contract • Closing or surrendering your annuity contract • Payments from your annuitized income annuity contract • Exchange of your annuity to another company (called a 1035 exchange) • Ownership changes Important sections of the 1099-R form include: RECIPIENT’S TIN: Individual’s nine-digit tax identifier number is now truncated to provide only the last four digits. Trust identification numbers will not change. Account number: Your annuity contract number. Box 1: Reports the total amount taken from your annuity contract, including income taxes and fees withheld, if any. Box 2a: Reports part of the distribution that is generally taxable. In cases in which we know that the distribution is generally not taxable (such as a 1035 exchange), the amount reported will be zero. If the box is blank, we were not able to determine the taxable amount of the distribution. If there is an amount listed here, it will be reported to the IRS as taxable income. The “Total distribution” box in Box 2b will be checked if all the assets have been distributed from the account. Box 4: Reports any federal income tax withheld from your distribution. Include this on your income tax return as tax withheld, and if Box 4 shows an amount (other than zero), attach Copy B of your Form 1099-R to your federal income tax return. Box 7: Defines how the money that has been taken out is reported to the IRS. For example, Code 6 is a 1035 tax-free transfer and Code 7 is a normal distribution. Note: Nonqualified annuity distribution codes will be followed by the letter D to identify distributions that may be subject to additional tax under Internal Revenue Code (IRC) Section 1411. Boxes 14–15: Report state tax and withholding information. Boxes 3, 6, 8, and 9b do not apply to your annuity contract. In addition, Fidelity does not currently complete Boxes 16–19. Frequently Asked Questions Why am I receiving a Form 1099-R? Generally, the IRS requires Fidelity to issue a Form 1099-R if you received a distribution from your annuity. I exchanged my annuity to anon-Fidelity annuity during 2025. This was nontaxable. Why am I receiving a 1099-R? Although a 1035 exchange is not a taxable event, it still needs to be reported to the IRS. Box 2a should show the taxable amount as $0.00, and the distribution code in Box 7 should be marked as “6,” which denotes the nontaxable 1035 exchange. Can I view my Form 1099-R online at [Fidelity.com?](Fidelity.com?) Yes. If you are an owner of an in-force annuity contract, you can view your tax form online by accessing [Fidelity.com/documents](Fidelity.com/documents) and selecting the Tax forms link. You can also sign up to be notified via email that your tax forms are available instead of receiving them by mail by accessing [Fidelity.com/eDelivery and updating your preferences](Fidelity.com/eDelivery and updating your preferences). Am I required to report information contained in Form 1099-R on my federal income tax return? Yes. Distributions from your annuity are generally reportable on Form 1040, Form 1040-SR, or 1040-NR. You are required to attach Copy B of your 1099-R to your federal income tax return only if federal income tax is withheld and an amount is shown in Box 4. Please refer to the official IRS instructions for Form 1040, Form 1040-SR, or 1040-NR, or consult your tax advisor for more information. My full distribution amount is less than my tax cost basis. Why am I receiving a 1099-R? Although the distribution was not tax

FAQs

Why am I receiving a Form 1099-R?

Generally, Fidelity is required to issue Form 1099-R when you receive a distribution from an annuity. You may receive multiple forms because each form is limited to one contract, one distribution code, and one withholding state.

Does a 1035 exchange need to be reported even if it is nontaxable?

Yes. A 1035 exchange is not a taxable event, but it still must be reported to the IRS. Box 2a should show a taxable amount of $0.00 and Box 7 should be marked with code “6.”

When and how do I need to report Form 1099-R on my federal tax return?

Distributions from your annuity are generally reportable on Form 1040, Form 1040-SR, or Form 1040-NR. You attach Copy B only if federal income tax is withheld and Box 4 shows an amount other than zero.

Sep 19, 2026

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