Question

1099 R

Forum|Forum|3 years ago
May 1, 2023
1 reply
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Please review this situation - I have not been able to receive any help to resolve this issue and would greatly appreciate any assistance:

Annuity Company provided a $12,000 RMD in Nov. 2021 (intended to be an annual amount paid once each year) but they then provided another payout in Dec. 2021 for another $12,000 (they inadvertently setup the account to pay out monthly instead of once annually)

We contacted the company and they pulled back the $12k in Jan. 2022 but stated that they could not revise the 2021 1099-R since the correction did not take place until 2022 . . . . and that we would have to wait until 2023 for a "corrected / revised" 1099-R form . . . . but they never sent a revised 1099-R, instead they sent a form 5498 reflecting a contribution back to the account of $10,471 ($12k minus federal tax) - and Turbo tax does not allow entry of this form for an amended tax return

NOTE: the 2021 1099-R showed a total distribution of $24,000 and the 2022 1099-R showed the normal $12,000 annual distribution received in Nov. 2022

Q: How do we account for the $12,000 distribution that was taxed in 2021 but was then pulled back into the account? Federal taxes that were "Over Paid" was about $1240.

Any help that could be provided would be greatly appreciated.

Bob

Not A Product Question

D

dmertz

Employee

They have treated this as a distribution of $24,000 and rollover of $10,471. You're 2021 tax return needs to show the full $24,000 included on Form 1040 line 4a and the $13,529 not rolled over included on line 4b, with the ROLLOVER notation next to line 4b. The $1,529 not rolled over due to being withheld for taxes needs to be included appropriately your federal and state tax withholding. If your filed 2021 tax return does not reflect that, you must amend. The Form 1099-R needs to be entered into 2021 TurboTax as received, then you must indicate that you moved the money to another retirement account, that you rolled over some of the money and that you rolled over $10,471.

Nothing about this goes on your 2022 or 2023 tax return. Only your 2022 distribution, reported on the 2022 Form 1099-R goes on your 2022 tax return.