Do I include on my tax form a trustee-to-trustee transfer (nonreportable) that was initially incorrectly reported by the Bank which has since issued a corrected 1099-R?

My Bank incorrectly issued a 1099-R for a trustee-to-trustee transfer. They designated it as "Normal Distribution" with all monies be taxable. They have since issued a corrected 1099-R (basically a lot of "XXX"). Since a transfer is not reportable to the IRS, do I need to include any of this information on my tax form?

1650

1 Best answer

Expert Alumni

Jun 1, 2019 12:46:50 PM

You have to report the corrected 1099-R on your tax return. You do not enter the erroneous form. If it was a trustee-to-trustee rollover, it will not be taxable.

Expert Alumni

Jun 1, 2019 12:46:50 PM

You have to report the corrected 1099-R on your tax return. You do not enter the erroneous form. If it was a trustee-to-trustee rollover, it will not be taxable.

Level 15

Jun 1, 2019 12:46:51 PM

Assuming that you are referring to a trustee-to-trustee transfer of one IRA to another IRA of the same type (traditional or Roth), if the corrected Form 1099-R shows $0 as the gross distribution, you should omit it since it has absolutely no effect on your tax return. If you enter it, it will probably unnecessarily prevent you from e-filing.

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Do I include on my tax form a trustee-to-trustee transfer (nonreportable) that was initially incorrectly reported by the Bank which has since issued a corrected 1099-R?