@taxmeplenty wrote:
Thanks so much for looking at this @macuser_22. I made the same assertions to Betterment Support. After a couple rounds, their final reply was:
You will need to report that using the 1099-R form as issued, because Betterment does not report the taxable amount for any IRA transactions.
Are you in essence saying filing Form 4852 is the correct, and only, way to handle this situation?
BTW, you do have the years right. I am trying to amend my 2019 return.
Yes. A substitute 1099-R in TurboTax is the 4852 form. It will ask for an explanation of why you are filing a substitute and the steps you took to get it corrected. Enough complaints about Betterment might get the IRS to impose a fine on them.
If you do not know the actual earnings to put in box 2a then from statements you need to determine the IRA value immediately after the excess contribution and again at the time of distribution. The difference it the total earnings in the account during that period. The prorate the amount of the excess with the account value to find the earnings attributed to the excess amount. If zero or a loss, then enter zero.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
