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Retirement tax questions
@balexh wrote:
The amount in box 2a is most definitely not correct on my 1099-R, and this page on my broker's site says they commonly do this: https://www.betterment.com/resources/common-tax-form-questions/#16
Personally I would find a new custodian for my IRA.
That link is correct for a REGULAR IRA DISTRIBUTION *not* a return of contribution which is not a regular distribution.
The IRA custodian is required by law to prepare a 1099-R according to the IRS instructions that clearly state:
For a distribution of contributions plus earnings from an IRA before the due date of the return under section 408(d)(4), report the gross distribution in box 1, only the earnings in box 2a, and enter Code 8 or P, whichever is applicable, in box 7. Also, enter Code 1 or 4, if applicable.
https://www.irs.gov/instructions/i1099r
The is not an IRA custodian option.