Do I still need to input a 1099R if I didn't cash the distribution check? Also, the check has expired and it appears there are no funds left in her retirement account.

[Jquez]

I figured we could just leave the money in that retirement account with her former employer and they even say with "some types of accounts" this is possible, but they cut her a distribution check which we didn't cash. Is there anyway to ensure we can still get this money? Since we didn't get the money, do I still need to input the 1099R into turbotax?

[VolvoGirl]

Yes you need to enter the 1099R or the IRS will say you missed it.  Did they take out withholding on it?  Then you want to get credit for that.  Call the plan and see if you can get a corrected 1099R or another check or what you can do about it.

[macuser_22]

Of course you do, otherwise you will get a letter from the iRS in a year or so for back tax plus interest and penalties.   Whether you cashed the check or not is immaterial once you had constructive receipt of it.

[Jquez]

I talked to an agent with the retirement plan and they are cutting a new check. Since this check will now be cashed in 2020, do I need to have an updated W-2 (removing the distribution for tax year 2019 and now applying it to 2020 since we will cash the check this year)? If that W-2 is corrected for the employer of that retirement plan without the distribution, would I then need to receive a 1099-R for the 2020 Tax Year instead? Or should I just cash the check this year and treat it like I received it last year and do my 2019 taxes as if this all happened last year? Thank you for your previous response.

[Jquez]

I may have just asked a question in the above response that was pertinent to what you stated. I am being cut a new check which I'll cash this year now. So do I still do my 2019 taxes as if I cashed that check last year? It sounds like the check isn't as important as when the original check was sent out and the IRS notified. Is that correct?