I Made a Mistake on How I Reported my Survivor Annuity CSF 1099-R Last Year and Now my New 1099-R Box 9b (Total Employee Contributions) Shows, "Unknown". Please Help.

[samurai132]

First some information about the annuity. This is an old annuity that started in 1991. According to an online annuity exclusion calculator, the last available post-tax exclusion was taken in 2016. All contributions have been fully recouped tax-free. No more carryover exclusions have been allowed since then. Taxes have been paid each year on the full amount of the annuity since then.

Prior to the current tax year, all 1099-R’s received had an amount filled in for "Total Employee Contributions" (Box 9b), however this tax year (2022) the 1099-R has, "Unknown" typed in box 9b. So I reviewed the return from 2021 and noticed that both the "Plan Cost" and the “Tax-Free Amount Previously Recovered” were left blank.

Last year, no less tax was paid because of the mistake, and in fact, taxes were still paid on the total amount of the annuity since there haven't been any exclusions allowed since 2016.

What is the proper way to fix this? Can I fill in the correct numbers for this year and everything will be ok? Will next year's 1099-R have the right number in box 9b? Or, do I have to file an amended return for last year? Will I get in trouble for this mistake? Thanks

[MarilynG1 · Accepted solution]

No, you don't need to Amend your prior year returns.  Since all the after-tax contributions have been taken as of 2016, you are correct that the Gross Distribution will be the taxable amount each year after that.

Unless the amendment makes a difference in the amount of your return, you don't need to Amend. 

Here's more info on Do I Need to Amend?

@samurai132