Thank you so much for fixing our mistakes again!
Update from her Roth account, now still pending
3/7/22 -1250 (rep said no March 4 removal, should we say March 7 excess removal now?)
3/7/22 -3398
3/7/22 -20.24
3/8/22 -1236.89 (a loss $13.11?)
Form 1040
Line 4a: 1250+3398+20.24+1250-13.11=$5905.13
Line 4b: 20.24-13.11=7.13 or 20.24-0=20.24, should it be 7.13?
We don't have accounts with Fidelity, she is a minor, to make things simple, we called Vanguard again, after 80 minutes wait, the rep said an indirect normal distribution can be done online, no mail-in check is required.
1. Will Vanguard issue a separate 1099-R for this rollover? The rep said it might be a combined form. I am confused, I create two 1099-R forms like you suggested:
First 1099-R.
Box 1: 4655.13
Box 2a: 7.13
Box 7: J, P
The rest boxes are all unchecked.
Second 1099-R
Box 1: 1250
Box 2a: 0
Box 2b: should "total distribution" be checked?
Box 7: J only?
Are the rest boxes all unchecked?
Q1: What did you do with the money from Vanguard? I checked these two boxes:
- I moved the money to another retirement account (or returned it to the same retirement account)
- I rolled over all the money to another Roth IRA (or returned it to the same account)
Explanations:
7/8/2021, contributed $6,000 to 2021 Roth IRA
3/7/2022, returned ($3,398) and gains ($20.24) for the first return of contribution
3/8/2022, returned ($1,250) and losses ($13.11) for the second return of contribution
Q2, do I need to mention the $1250 rollover here?
Q3, can I send her 2020 Fed return now? That one is totally done, correct?
Q4, once the pending status is off, I will rollover $1250 back to her Roth. How can Vanguard know this money will be her 2021 roth contribution made in March 2022? Am I mixing things up again?
Thank you so much for your kind help!!!
