TSP and Excess Payment

[ChrisD-65]

I've got a weird one for the group.

Last year I rolled over some money from TSP to my Vanguard IRA account. Being the Govt they sent a check to Vanguard. Check wasn't received in over 2 months, so they issued another check.  Original check and the replacement check were both deposited into my Vanguard IRA account. Noticed the issue with the overpayment and contacted Vanguard, they said they could do nothing about it, contacted TSP and they said they would try and work it. So, from Apr 2023 to Oct 2024, they went back and forth. Finally, I got someone at Vanguard that knew what they were doing so I requested an Excess Contribution Removal of the money since it wasn't mine in the first place.  Money was sent to me to include all earnings in the account till it was removed.

Issue: I received my Vanguard 2024 1099-R

Line 2a listed the taxable amount 

Line 4 listed the taxes they took out for 2024

Line 7 had the codes 1, P 

- I entered the information into TurboTax 2024 and it responded that I needed to do an amended return for 2023.  Started an amended return for 2023 but the information on the 2024 1099-R is for 2024 and not 2023

So, the question is how do I proceed with entering the data in the amended return?

Any help would be greatly appreciated.

[ThomasM125]

You need to determine the amount of income that applies to the overpayment in 2023, from the earnings on the overcontributed funds during that year, and enter that for the taxable amount in line 2a of your 2023 Form 1099-R entry.  You received the return of funds in 2024, but since the income was earned on 2023 contributions, that income goes on the 2023 return. 

If you think the broker didn't report things properly, then you should request a corrected Form 1099-R.