dmertz
Level 15

Retirement tax questions

This was apparently not a direct rollover, otherwise there would have been no tax withholding.  No tax withholding is permitted to be reported on a Form 1099-R that reports a direct rollover (code G) because whatever is being withheld for taxes is not being directly rolled over.  Any taxes withheld are required to be reported on a Form 1099-R that is separate from a code G Form 1099-R.  The 20% that was withheld is the mandatory minimum for a distribution that is not a direct rollover.

 

If the distribution was more than 60 days ago there is nothing you can do now to avoid paying tax and possible early-distribution penalty on the $9,567.42.  To avoid that you had to substitute other funds to complete the rollover of that portion of your distribution within 60 days and later get back in your tax refund whatever amount of excess tax withholding you had.