I don't know if the one penny idea will work - I suspect it will (unless when they transmit the file, they round up/down and force whole dollar amounts). I experimented with editing my form in the income section, and it does allow for the one penny (example shows 999.01 instead of 999.00). HOWEVER it may raise a flag with the IRS and result in an audit later - they do match up the 1099-R forms we enter against the same data reported to them by the payer. That one penny COULD cause a mismatch - but is it enough for them to trigger an audit?? Hard to say. For the most part, the IRS deals with whole dollar amounts. (I called the IRS help line but all they have is an automated menu to choose from, and speaking to a human is not an option)
