Discussion:Incorrect 1099-R/Form 5498
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Discussion Forum Index --> Basic Tax Questions --> Incorrect 1099-R/Form 5498
Discussion Forum Index --> Tax Questions --> Incorrect 1099-R/Form 5498
| 2009-10-16 | |
| Client has 1099-R with IRA rollover amount in both Box 1 and Box 2a as taxable; however, this transaction was a rollover within 60 days but the broker did not issue the 1099-R correctly. The only thing received from broker in addition to the 1099-R was Form 5498 showing the same rollover amount in Box 2. Should client ask broker to reissue a new and corrected 1099-R or that's enough info. to file the return with the amount not taxable since it was really a rollover? (This was for 2008 tax year). | |
| 16 October 2009 | |
| You should be ok to file without getting a corrected 1099-R. I would at least ask for documents to support the withdrawal date and the rollover funding date.
Your TP could have taken his rollover money to a different broker or bank and opened a new account within 60 days - no difference from what your facts are. | |
| 2009-10-16 | |
| Thanks Kathi- I'm surprised they would not reissue a corrected 1099 (but then again this was 2008). | |
Death&Taxes (talk|edits) said: | 16 October 2009 |
| If the client took the check, I believe the 1099R is correct. The 5498 is your proof that the rollover was consumated. | |
| 2009-10-20 | |
| are you saying that it is taxable?? even though clt deposited the funds in less than 60 days?? the broker just would not reissue the 1099 but they insisted that the 5498 is all that's needed. | |
Pink Pearl (talk|edits) said: | 20 October 2009 |
| I believe most tax prep programs have a box to check to indicate that this was rolled over by taxpayer. It would be on the 1099-R input screen. | |
Death&Taxes (talk|edits) said: | 20 October 2009 |
| No it is not taxable because he acted within 60 days, but the fiduciary is not going to make that determination. He could have taken the money November 30 and replaced it January 15th, or done a series of withdrawals and tried to put them back, in which case he is only permitted to do that once. Think about it; what happens if he takes the money to another brokerage?
Pink has the answer as to how to handle it. | |
Pink Pearl (talk|edits) said: | 21 October 2009 |
| I would think the originator of the 5498 reports via electronic filing with the IRS the distribution of, the amount of and the date of any monies distributed to taxpayers. The tax preparer fills out the 1099-R entry exactly as shown on the 1099-R but completes the information that the rollover occurred within 60 days. This eliminates the taxability of this transaction on the return. I also assume that the institution that receives the rollover also reports the receipt of this rollover, the date of and the amount of the rollover. All of these reportings eventually merge into the system and voila...no income tax due. | |
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