How do I file an IRA distribution without a 1099-R?

[chatwjoan]

"I have a situation where Morgan Stanley lost a large amount of money on my investments and I filed a complaint with SEC. Morgan Stanley paid me some money and has not sent me a 1099-R. How do I put this into Turbo Tax? Will it be an IRA distribution?"

[AmandaR1]

We can't know what's going on with you and your Morgan Stanley accounts, but I can give you some tips for taxes. 

If you haven't already, try logging into your online account. Most companies are now providing tax forms in your online account, so you may be able to find your 1099-R there (or any other form they may have issued you). 

You are never taxed on a return of principle (after tax contributions), so you should get your records together for your retirement plans. You'll need to figure out where you stand. However, you can't report a distribution without a 1099-R.  

Since this affects ownership and legality (beyond our scope to advice), I'd recommend considering speaking to a tax attorney. 

[sgil46]

The preceding response, if true, indicates that TurboTax is creating an unnecessary roadblock to potential users if it insists that a 1099-R is needed to report a distribution from any retirement plan. A 1099-R is ONLY needed if taxes were withheld. That would permit the IRS to verify that fact and the amount. When no taxes are withheld, the taxpayer merely needs to enter the total of all distributions on the appropriate line on the 1040 form. My CPAs of the past have exactly that for more than 20 years. TurboTax should be no different. I was hoping to use turbotax for the first time this year because my last CPA retired.  I may be forced to find a new CPA because I have at least one plan that has never distributed a 1099-R and legally is not required to do so.

[fanfare]

there's a big difference between writing in amounts on Form 1040 yourself, and using tax prep software.

software is driven by 1099-R, with or without withholding.

[sgil46]

Thank you for your response. If that arbitrary restriction is insurmountable, then me and anyone else in my situation cannot use Turbotax. I am pretty much resigned now.

[fanfare]

If you truly cannot surmount some impediment, you can always use "override" and file a paper tax return.

Happens all the time.

@sgil46 

[sgil46]

What is override? I got to the review section, and I was not permitted to move on while the TIN was left blank.

[fanfare]

"not permitted to move on while the TIN was left blank"

Make up a number starting with 47. Your e-File would likely be REJECTED. ( I never tried this)

Select: file a paper tax return by mail. The TIN will not appear on your printed tax return.

override is not permitted in the Online version of TurboTax.

[sgil46]

Nine months later, too late unfortunately, I came across the directions below. Is there any reason this would not work or does it not work only with on-line turbotax?

If you cannot get a 1099-R issued for your retirement distributions (please verify with the plan administration) then you will have to create a substitute 1099-R:
 
1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R”
4. Select "Change how I enter my form" on the "Let's import your tax info" screen
5. Select "Type it myself"
6. Continue through the questions until the "Do any of these situations apply to you?" screen select "I need to file a substitute 1099-R"

[dmertz]

Nothing prevents you for amending your 2022 tax return.  TurboTax supports the filing of a substitute Form 1099-R (Form 4852).

[sgil46]

This is apparently the solution (not personally tested yet) for when you cannot get a 1099-R issued for your retirement distributions from your account custodian. You will have to create a substitute 1099-R because TurboTax will not file electronically for you until one has been generated.

1. Login to your TurboTax Account
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R”
4. Select "Change how I enter my form" on the "Let's import your tax info" screen
5. Select "Type it myself"
6. Continue through the questions until the "Do any of these situations apply to you?" screen select "I need to file a substitute 1099-R"

I am hoping someone will corroborate if this is true, or is true under limited circumstances. If it is, then I will post a new subject entitled "when you cannot get a 1099-R issued for your retirement distributions." People need to know before they purchase the wrong version of TurboTax as I seem to have done. I did not ask for a refund, I simply discarded the TurboTax output went and had my taxes prepared by a CPA.

[sgil46]

I cannot get a substitute 1099-R from the account custodian because mine is not a traditional IRA but a self-defined one. It was once a Keogh and had to be transformed when that type was eliminated. If TurboTax will allow me to write my own and then recognize it in the TIN entry that would solve the problems for anyone in my boat for the 2023 tax year.

[dmertz]

YOU create the substitute Form 1099-R, which can be done in TurboTax.

[fanfare]

TurboTax (and IRS) now supports e-File of the prior year 1040-X.

When e-File is open in February you can use TurboTax 2022 to amend your 2022  federal tax return and e-File it.