Hi,
I had put money into a Roth IRA and realized that I would go over income limits, so I asked payer return the money (100% of my contributions) within the same year. The agent did the transaction as an early distribution from a Roth IRA (code J) instead of an excess distribution. I called the payer and they are not able to correct things of their side. How do I handle the correction? Right now, with code J, I will have to pay a penalty as I'm under 59 1/2, but this was an excess distribution.
Here's the scenario:
1) I contributed about $5,500
2) The market went down a gross distribution was about $5,100 ($400 loss). This was amount in Box 1.
3) $1,200 was withheld for Federal tax (Box 4) on 1099-R
4) $1,200 was withheld for State tad (Box 14) on 1099-R
5) 2b Tax amount not determined is checked on 1099-R
6) Distribution code (Box 7) is listed as J, but is incorrect
What would my new 1099-R look like? How do I correct this in my taxes when the payer won't correct things on their end?
