"Why do you think the gifts given to individuals would reduce the taxable amount of the distribution?"
"Gifts given to an individual are not reported on a tax return."
TD Ameritrade reported my sales of AAPL (100 + 100) shares correctly, but they also reported my gifts of AAPL (100 + 100 + 100) shares on their 1099-R. They used Distribution code (7) for both transaction sets because they have no other way to code it. I was told that by one of their SEP / IRA agents. He told me to ask the IRS to sort it out.
Over.
