Is a Corrected 1099-R required?

[Yardley CPA]

Client made a $250 contribution to an IRA at his bank. Client has two bank accounts with the bank. Bank took the $250 contribution out of both bank accounts and deposited $500 into the IRA. Once the mistake was found, bank withdrew $250 and returned it to his normal checking account. As a result of this "withdraw" from the IRA, bank issued client a 1099-R showing a distribution from the IRA.

Client has not received a Corrected 1099-R. Bank told him to include a copy of his bank statement showing both $250 contributions to the IRA and the withdraw of $250 with an explanation of the mistake. I've never heard of this and felt a Corrected 1099-R is what is needed but wanted to throw it out there and see if anyone else has delt with a similar situation?

Thanks!

[JJStephens]

I ran into a similar thing a year or two ago. The bank wanted to take the easy way out. We finally forced their hand on issuing a corrected 1099-R (alas, it took them two months to do it). That's what I'd suggest.

[Jack from Ohio]

I agree with JJStephens. The bank, as usual, is being lazy and taking the cheap easy (wrong) approach.

[kcjenkins]

Yep you should insist that they correct THEIR ERROR in the proper manner, with a CORRECTED 1099R.

[WITAXLADY]

MOM was dying so took out IRA but was joint in daughter's name so she could sign, bank issued 1099 in daughter's name - I said take it back and get it corrected - you were not old enough to take this out! She did and they did - hard to believe they listened, annoying they made the mistake in the first place. We are never allowed that latitude.

D

[grandmabee]

How can an IRA be in a joint name?