@jjhowey wrote:
You can just report it now and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or box 12 State withholding. Then you must also enter the 2021 1099-R into the 2021 tax return since the withholding is reported in the year that the tax was withheld. The 2021 code JP will not do anything in 2020 but the withholding will be applied to 2021.
@macuser_22 Sorry, I am not clear on Box 4 part here. I am in similar circumstance to OP, 2021 Excess withdrawn in 2022.
I requested Vanguard withhold 25% Tax (they know for 2021) and I know what that number is (despite not having a 1099-R issued).
Are you saying I leave 4a Blank for my pretend Tax Year 2021 1099-R and re-claim it in 2022? (If so, what do I state for 1 and 2a for Tax Year 2022??).
The withholding apples to the year returned. If that was 2022 then the withholding can only be claimed int 2022 tax. It makes not sense to have withholding in 2022 for 2021 excess.
For 2021 if you are entering a dummy 1099-R then leave the box 4 blank. When you receive the actual 2022 1099-R next year enter it as received and the withholding will offset your 2022 tax.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
