U.S. · Form 1099-R box 5
1099-R box 5 employee contributions.
The tax-free part of the distribution: what belongs in box 5 and what does not.
Box 5 is the money you get back tax free this year. The IRS tells payers to enter employee after-tax contributions, designated Roth account contributions, certain employer contributions treated as the employee’s, the cost of life insurance protection already taxed to you, and annuity premiums that are recovered tax free. It is blank when the payer cannot compute the taxable amount.
Look it up
Result
Box 5: what goes in and when
| Topic | What the IRS instructions say |
|---|---|
| What may be included | (a) designated Roth account contributions or after-tax contributions that were included in the employee’s income when contributed; (b) employer contributions treated as made by the employee under section 72(f); (c) the accumulated cost of premiums for life insurance protection taxable to the employee in previous and current years, only if the life insurance contract itself is distributed; (d) premiums paid on commercial annuities. |
| What is excluded | Do not include DVECs, elective deferrals, or any contribution to a retirement plan that was not an after-tax contribution. |
| Qualified plans, 403(b) and nonqualified annuities | Enter the employee contributions or insurance premiums recovered tax free during the year, using the same method the payer used to find the taxable amount in box 2a. |
| Total distribution | Show the total employee contributions or insurance premiums available to be recovered tax free only in box 5. Amounts recovered in prior years must not appear in box 5. |
| Designated Roth account | Put the basis (designated Roth contributions) in the distributed amount in box 5. IRS example: $5,000 nonqualified distribution, $300 taxable, $4,700 in box 5, code B. |
| Cannot compute taxable amount | Leave box 2a blank, leave box 5 blank (except for reportable death benefits) and check the first box 2b. |
| Reportable death benefits | Enter the payer’s estimate of the buyer’s investment in the contract; box 5 must be completed. |
| Section 1035 exchange | Enter the total premiums paid in box 5, with the contract value in box 1, -0- in box 2a and code 6. |
| Loss on a plan distribution | Enter the employee’s remaining after-tax or designated Roth contributions in box 5 and leave box 2a blank. |
| Periodic payments that began before 1993 | The payer is not required, but is encouraged, to report in box 5. |
| Annuity starting date after November 18, 1996 | The simplified method must be used to figure the tax-free amount each year. |
| Charitable gift annuity | Report any nontaxable amount in box 5, with code F in box 7a. |
Reading box 5 with box 1 and 2a
For many plan distributions the three boxes add up: the gross amount in box 1 is split between the taxable amount in box 2a and the recovered basis in box 5. A box 5 larger than box 1 is allowed, because the instruction says to enter what may be recovered tax free this year even if it exceeds the box 1 amount; that is the situation in a loss.
Worked example (from the IRS instructions)
A participant’s designated Roth account is $10,000, made up of $9,400 of contributions and $600 of earnings. A nonqualified $5,000 distribution is taxable on $600 ÷ $10,000 × $5,000 = $300. The payer reports $5,000 in box 1, $300 in box 2a, $4,700 in box 5, $60 withheld in box 4 (20% of the taxable amount) and code B, plus the first year of the 5-tax-year period in box 11.
Why a blank box 5 is not a mistake
If the payer does not have your after-tax history, the IRS tells it to leave both box 2a and box 5 blank and check the first box in 2b. You then rely on your own records of after-tax contributions, such as plan statements, to claim the basis.
Limits
Box 5 is the payer’s figure. If it conflicts with your records, ask the payer for a corrected Form 1099-R before filing. This page does not tell you how to report basis on your return.
Sources
- Instructions for Forms 1099-R and 5498 (2026): Table 1 distribution codes and the instructions for the 1099-R boxes covered above. Read November 2, 2026.
IRS page last reviewed June 23, 2026. This is the 2026 edition of the instructions, written for forms filed for 2026 distributions; the IRS revises it each year, so check the current edition before relying on a code.
Frequently asked questions
What is box 5 on a 1099-R?
Box 5 shows employee contributions, designated Roth account contributions or insurance premiums that you may recover tax free this year.
Does box 5 include 401(k) elective deferrals?
No. The instructions say not to include elective deferrals or any contribution that was not an after-tax contribution.
Why is box 5 blank?
Typically because there is no after-tax basis in the plan, or because the payer cannot compute the taxable amount and has left boxes 2a and 5 blank.
Can box 5 be larger than box 1?
Yes, in a loss situation. The instructions tell payers to enter the amount recoverable tax free even if it exceeds the box 1 amount.
What goes in box 5 for a section 1035 exchange?
The total premiums paid, with the contract’s total value in box 1, zero in box 2a and code 6 in box 7a.
Not tax or legal advice
This page summarizes IRS instructions to payers and is not tax, legal or financial advice. A CPA, enrolled agent or the payer can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.