Which of the following is true about the 1099-R form?

The 1099-R form is specifically designed for reporting distributions from pensions, retirement plans, annuities, and other types of similar plans. This form is issued to individuals who receive payments from these sources, which may include lump-sum payments, periodic payments, or rollovers. The information provided on the 1099-R includes the amount of the distribution, the taxable amount, and any federal income tax withheld.

In this context, the reason why this choice is correct is that it accurately reflects the purpose of the 1099-R form in terms of reporting income that originates from retirement-related sources, aligning with the form's function in tax reporting for such distributions.

The other options misrepresent the role of the 1099-R. For example, reporting wage income pertains to forms such as the W-2, which is used to summarize wages, tips, and other compensation from employment. Investment income is typically reported on different forms, like the 1099-DIV for dividends or 1099-INT for interest income. Lastly, self-employment income is reported via forms such as Schedule C and the associated 1099-MISC or 1099-NEC, which focuses on non-employee compensation. Therefore, option B stands