Question

1099-R error on early distribution of Roth IRA

Forum|Forum|4 years ago
March 28, 2022
2 replies
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I opened a Roth IRA in 2012 for $2,000 and closed out the account with an early, full distribution in 2021at age 34 because the returns were so bad and it had only earned $64 total net gains. My 1099-R shows $2,064 in the "Gross distribution" box, the "Taxable amount" box is blank, and the boxes are checked for "Taxable amount not determined" and "Total distribution", the Distribution code is "J", and the "1st year of desig. Roth contrib" space is blank. The "Taxable amount" box should say $64, with these other boxes also corrected. I have statements from 2012 and 2021 to prove my taxable gains amount. I reached out to the financial company to correct, but have had no response. What form(s) do I need and how do I correct this in TuboTax (desktop)? Thanks!

TurboTax Home & Biz Windows

fanfare

Employee

when you enter the 1099-R turbotax will ask you what were your contributions.

you say: $2,000.

F

FangxiaL

After you enter the 1099-R, on the screens that follow, you will have to enter if you owned the Roth IRA for five years and to enter prior-year Roth IRA contributions. After you enter the info, TurboTax will figure out the correct taxable income and penalty. See screenshots below:

@LCoop

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L

LCoopAuthor

Thanks for your timely response. You're saying that I only have to correct the information myself? However, I was reading the "Learn more" on the screen that asks you if you need to file a "Substitute Form 1099-R". So, I was wondering if, instead, I need to check this box and do this? Because, it says something about needing to file a a Form 4852 as a substitute if you've tried to get the payer to issue a corrected 1099-R and they won't.

It says:

"Form 4852, Substitute for Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc.

Substitute Form 1099-R

If your plan administrator doesn't give you Form 1099-R for 2021 (or the one you receive is wrong and your plan administrator refuses to correct it), do your best to obtain the form or correction before completing a substitute on Form 4852.

You'll be required to:

- describe your communications with the plan administrator in your attempt to get the form, and

- attest to the IRS that you were unable to obtain it.

Complete a Form 1099-R as if you actually received the correct form. Enter as much information about the payer as you can, including name, address, and the amounts for 2021. Then complete the information for the substitute form."

Thanks.