dmertz
Level 15

Retirement tax questions

This distribution should have been made payable to destination retirement account and your bank should not have allowed you to deposit the check into anything but the destination retirement account.  If you deposited the distribution directly into your savings account instead, it no longer constitutes the direct rollover that the original plan trustee reported with code G on the Form 1099-R.

Under these circumstances, you must request that the original plan trustee correct the Form 1099-R to show a regular distribution.  Invariably they will refuse.  You'll then need to prepare a substitute Form 1099-R (Form 4852) reporting this as a regular distribution (code 1 or code 7 depending on whether you were under or over age 59½, respectively) and provide an explanation of your attempts to get the trustee to correct the reporting and the reason that the original reporting was incorrect.

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