IRA roll over correction form

[ILLMAS]

What is the form number to correct a roll over that was reported incorrectly on the 1099-R?

Thanks

MAS

[jainen]

>>to correct a roll over that was reported incorrectly on the 1099-R<<

What did it say and what should it have said?

[ILLMAS]

Box 2 shows the same amount as box 1, distribution code is 2, box 2b and 2c are checked off, since it was a roll over, box 2 should be zero and box 7 should be G. Client brought in broker statement from the new account and it reflects the same amount from box 1 and 2.

[jainen]

>>Client brought in broker statement from the

Unless that statement looks a lot like Form 5498, the money was not rolled over into an IRA. In that case, you correct it with a private letter ruling citing error by the financial institution.

[joanmcq]

Is the new account an IRA? Then you put the rollover amount in the 'amount rolled over' box right under box 2 in ATX. You don't change the 1099-R.

[Gail in Virginia]

Technically, for a rollover the code is correct. If the client took the money out and rolled it over to a new IRA, the old trustee has no information other than the distribution that they have properly reported. You will need to fill in the rollover box on the 1099R you input and complete the explanation stating that the money was rolled over. The code G is for trustee to trustee transfers only and does not apply to rollovers.

[ILLMAS]

Ok thanks, I was not planning on correcting the 1099-R myself, I know there is a way to explain it, and that is what I am looking for, where do I put the explanation to attach to the tax return? It's probably something so simple.

[joanmcq]

When you fill in the 'amount rolled over' box, it prints ROLLOVER next to line 15a on the return. If the taxpayer gets a notice, you can counter with the statements showing the date withdrawn & the date deposited, plus the 5498.

[mcb39]

I wish this discussion had taken place last week. I had one that was coded 1 for premature distribution; no known exception. The taxpayer contacted the broker who said we couldn't get a corrected 1099R until May. I went ahead and filed it as it was with the intention of amending it when we get the correct information. Because this was a very complicated return involving inheritances, and many other issues; the client did not want to do anything that would draw unnecessary scrutiny to the return. I assured him that we had not done anything incorrectly, but he preferred this route.

This board is a never-ending learning experience. Gail, it was not a trustee to trustee transfer which is probably why it was not coded G and I didn't know that either. It could have been coded 4 at least and avoided the penalty.