dmertz
Level 15

Retirement tax questions

Then code 2 makes no sense at all since none of the coronavirus-related accommodations happened until well after that, so Vanguard could not have asked if this was coronavirus -related.  Vanguard clearly goofed something up, it's just not entirely clear what or how.  This form is reporting a regular distribution, not a return of contribution.

 

A correct Form 1099-R reporting this as a return of contribution would have:

 

  • Box 1 = $5,002
  • Box 2a = $2
  • Box 7 = codes 1 and 8
  • IRA/SEP/SIMPLE box = marked