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September 30, 2024

Tax return Amendment for Small Distribution in corrected 1099-R

  • September 30, 2024
  • 1 reply
  • 0 views

Hello,

 

In 2023, I did a direct rollover from a Rollover IRA (originally from my previous employer’s 401k) to my new employer’s 401k.

While the majority (over $10k) was rolled over directly, a small residual of $11 was mailed to me instead. I cashed it, assuming it was from another brokerage account I had closed.

 

I initially received a 1099-R showing the entire amount as a direct rollover (code G), and I filed my 2023 taxes based on that. However, my broker recently realized the $11 wasn’t part of the rollover and amended the 1099-R to show it as an early distribution.

Amending my return for just $11 seems excessive, but I want to avoid future issues. What would you recommend in this situation?

 

Thank you.

1 reply

Employee
September 30, 2024

Generally amendments are not necessary when the change in tax liability is trivial.