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I did a direct rollover in Dec 2017, but the check was re-issued in 2018. I now have a 1099-R for 2017 & 2018. Is this a penalty? How do I report it?

Forum|Forum|7 years ago
June 5, 2019
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Best answer by dmertz

The plan should not have issued a 2018 Form 1099-R for the same money. If they chose to treat this as a 2018 distribution instead of a 2017 distribution, they must issue a corrected code G 2017 Form 1099-R showing $0 distributed. Otherwise they should treat this as a 2017 distribution and issue a corrected code G 2018 Form 1099-R showing $0 distributed.

Only the amount actually rolled over will appear as a rollover contribution on the IRA's 2018 Form 5498. Say the amount was $10,000. With Forms 1099-R showing a combined $20,000 distributed from the qualified retirement plan but only $10,000 reaching the IRA, the IRS is likely to question what you did with the other $10,000. That's why one or the other of the code G Forms 1099-R has to be corrected to show $0 distributed.

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SweetieJean

Employee

Please explain what you mean by the check was re-issued. You did a rollover, but then cashed it in?

Lisa995

Employee

Which year did you get the 1099R for? Direct rollover should be a Code G in Box 7.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

J

jehlenAuthor

We had the qualified plan send a check direct to IRA, but the check was lost and they had to start again. So, the initial rollover started in 2017. But, didn’t complete until 2018, but it was withi. 60 days. I reported the rollover with 2017 taxes. Not sure what to do with the 1099R this year.

Lisa995

Employee

Did you get a 1099R for both years and both had Code G in Box 7?

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

J

jehlenAuthor

Yes

Lisa995

Employee

Code G will make it non taxable, just enter the 1099R as its shown.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

D

dmertzAnswer

Employee

The plan should not have issued a 2018 Form 1099-R for the same money. If they chose to treat this as a 2018 distribution instead of a 2017 distribution, they must issue a corrected code G 2017 Form 1099-R showing $0 distributed. Otherwise they should treat this as a 2017 distribution and issue a corrected code G 2018 Form 1099-R showing $0 distributed.

Only the amount actually rolled over will appear as a rollover contribution on the IRA's 2018 Form 5498. Say the amount was $10,000. With Forms 1099-R showing a combined $20,000 distributed from the qualified retirement plan but only $10,000 reaching the IRA, the IRS is likely to question what you did with the other $10,000. That's why one or the other of the code G Forms 1099-R has to be corrected to show $0 distributed.