1099-R Form

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  • #2411
    zkeith42
    Participant

    In 2018, I did a Qualified Charitable Distribution from one of my retirement accounts. To simplify the explanation herein, I’m using round numbers.

    The 2018 RMD from this account was $12,000. The amount of my QCD was $2,000. I used the form the plan administrator provided me to do the QCD. So when my RMD was taken from this account mid-December, I was expecting a distribution of $10,000, but the plan administrator removed the full amount of $12,000. When I called the company, I was told that I needed to call the company BEFORE the RMD came out to let it know how much RMD to take out because my account was set on “automatic” rather than “manual.” I’m dealing with a very large company. I’m surprised the computer system wasn’t programmed to do the correct thing automatically.

    I was told I could do a 60-day rollover to replace the $2,000 that was taken out mid-December but in fact didn’t need to be taken out because I had done the $2,000 QCD. The company considered the QCD as an extra distribution and not a QCD because I failed to call to let it know that $10,000 needed to come out for the remainding of the RMD, not $12,000. I did do the rollover. I’m assuming I will be receiving a 5498 Form.

    So instead of my 1099-R form showing a gross distribution of $12,000 and a taxable amount of $10,000, it shows a gross distribution of $14,000 and a taxable amount of $14,000. I asked for a corrected 1099-R but my request was declined and was told to “work with my tax advisor” to resolve the issue.

    So with the incorrect information on my (1) 1099-R, my (2) paperwork from the charitable group and the company where this account is held showing a $2,000 QCD, and (3) a 5498 Form, will my accountant be able to work with the numbers so I am only paying tax on the $10,000 and not on $14,000? And if so, how will IRS be able to resolve the discrepancy between the numbers on the 1099-R and my 1040? Does the accountant provide some explanation on my 1040? Or do I wait until IRS notifies me of the discrepancy and then I go through the arduous process of explaining what happened?

    Any advice will be appreciated.

    #2475
    wanttoknow
    Participant

    (cancelled)

    #2476
    dienerte
    Participant

    zkeith42 – Did you not post this question on another similar site and get a proper response there?

    #6694
    Lewis-H
    Participant

    You should receive a copy of Form 1099-R, or some variation, if you received a distribution of $10 or more from your retirement plan. Form 1099-R is used to report the distribution of retirement benefits such as pensions, annuities or other retirement plans.

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