Deadline for corrected 1099-R

[SkeeterB767]

My financial institution made a mistake and duplicated an end of year RMD.  Their solution was to take the "excess" RMD and roll it over back into my IRA, which I did.  I was told that they would issue a corrected 1099-R since the original 1099-R  erroneously shows the excess RMD.  As of May 28, they have not issued the corrected 1099-R.  Is there a deadline for the corrected document?

[Bsch4477]

There is no strict deadline for the issuing of a corrected 1099-R. You could use the original one. When reporting it TurboTax asks how much is RMD. After reporting the correct amount you can say you rolled over the remainder of the distribution. 

[SkeeterB767]

Thank you very much!  I hadn't considered that option and if Vanguard doesn't come through soon then that is what I will do.  Thanks again.

[dmertz]

"I was told that they would issue a corrected 1099-R since the original 1099-R  erroneously shows the excess RMD."

A corrected Form 1099-R is not normally issued under these circumstances, particularly because the funds came under your control outside of the IRA.  Normally you would report as a rollover the amount returned to the IRA.  (However, if the distribution was from an inherited IRA paid to you as a non-spouse beneficiary, no rollover is permitted.)  For the financial institution to issue a corrected Form 1099-R they would essentially be falsely claiming to the IRS that the funds never came under your control.

[SkeeterB767]

Thank you for such an excellent answer.  I understand now what the situation is and that my advisor at Vanguard misunderstood what I could expect from Vanguard in the form of a "corrected" 1099-R.  I think I can now  file my taxes using TurboTax because the software accounts for an excess RMD that is then rolled over back into the IRA.  Thanks again!

[Opus 17]

I agree, I would not expect a corrected 1099-R.  The 1099 has to show what actually happened in 2024, which is that you were paid (for example) $10,000 instead of $5000.  But there should be no problem telling Turbotax that $5000 was your RMD and the other $5000 was rolled over.  (It doesn't matter if it was put back into the existing IRA or rolled over into a new account, it still counts as a rollover, as long as it happened within 60 days of the withdrawal.)

And, BTW, if the mistake was discovered AFTER 60 days, a rollover is generally not allowed.  To do a rollover after the deadline, you have to file a letter with the IRA trustee that you self-certify that you qualify for an exception, and keep a copy of the letter with your other tax papers in case you are audited (there is a model letter on the IRS web site). 

[SkeeterB767]

Thanks for another great answer to my question.  I plan on "educating" the Vanguard people who have a misunderstanding of this issue.