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#2260287 - 09/27/21 05:24 PM Need help with an IRA 1099R correction!
WWIT? Offline
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Joined: Jun 2010
Posts: 136
GA
Let me start by saying that I know very little about IRAs-

In October 2018, we had a customer come in to request a transfer to an IRA at another bank. The person that handled the transaction back then, entered it as a normal distribution instead of a transfer. The customer did not receive any of the funds. The check was made payable to the other bank as IRA Custodian. Of course our customer has received notice from the IRS regarding taxes due for this distribution.

My question is-do I just need to send in the 1099R and mark it as void? From what I am reading, it doesn't look like they should have received anything at all regarding the transfer from one custodian to another custodian.

Thanks for your help!

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#2260290 - 09/27/21 05:45 PM Re: Need help with an IRA 1099R correction! WWIT?
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,297
Galveston, TX
IN 2018: Use Code G for a direct rollover from a qualified plan, a section 403(b) plan, or a
governmental section 457(b) plan to an eligible retirement plan (another qualified
plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA). See
Direct Rollovers, earlier. Also use Code G for a direct payment from an IRA to an
accepting employer plan, and for IRRs that are direct rollovers.
Note. Do not use Code G for a direct rollover from a designated Roth account to
a Roth IRA. Use Code H.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2260295 - 09/27/21 06:46 PM Re: Need help with an IRA 1099R correction! WWIT?
WWIT? Offline
100 Club
Joined: Jun 2010
Posts: 136
GA
It was Traditional IRA to Traditional IRA. Thank you so much for the info! Have a great day!

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#2260300 - 09/27/21 07:41 PM Re: Need help with an IRA 1099R correction! WWIT?
Questions Offline
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Joined: Jun 2009
Posts: 85
If it was a transfer from a Traditional IRA to a Traditional IRA, the transaction is not tax reportable. So you should not have issued a 1099R to your customer. We would issue a corrected 1099R by placing an "X" in the CORRECTED box and zeroing out any amounts that you reflected on the first tax form. Hope this helps!
Last edited by Questions; 09/27/21 07:58 PM.
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#2260303 - 09/27/21 08:30 PM Re: Need help with an IRA 1099R correction! Questions
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,297
Galveston, TX
Originally Posted by Questions
If it was a transfer from a Traditional IRA to a Traditional IRA, the transaction is not tax reportable. So you should not have issued a 1099R to your customer. We would issue a corrected 1099R by placing an "X" in the CORRECTED box and zeroing out any amounts that you reflected on the first tax form. Hope this helps!

You would have reported it back in 2018 even if you are not required to report it now. - See the instructions the I posted above.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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