Inadvertently cashed a SEP-IRA distribution check made out to my Custodial SEP-IRA account. Was issued a 1099-B, but should have been issued a 1099-R

Forum|Forum|1 year ago
March 1, 2025
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After transferring all whole shares from my Equiniti SEP-IRA custodial account to another SEP-IRA custodial of mine at Etrade, I was issued and inadvertently cashed a residual dividend payment from Equiniti (which was made out to my name, but with the custodian designation as well), which reflceted a dividend payment that occurred after the share transfer date. Equiniti then issued me a 1099-B, when it should have issued a 1099-R to me reflecting an IRA distribution. But Equiniti says it cannot/does not issued 1099-R forms. How do I fix or explain the erroneous form to the IRS?

PatriciaV

Employee

You received a residual dividend payment, which can be reported on Form 1099-B. If it had been deposited into the new SEP-IRA, you could have reported it as an IRA distribution. In this case, you will need to include the dividends on your tax return.

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bmwermuthAuthor

Okay, yes, and thank you. And I assume from your answer that it will be reported in the 1099-B section of TurboTax, since that was the form on which the residual payment was reported. Thanks again.