Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 3
posted Feb 28, 2025 6:46:32 PM

Inadvertently cashed a SEP-IRA distribution check made out to my Custodial SEP-IRA account. Was issued a 1099-B, but should have been issued a 1099-R

After transferring all whole shares from my Equiniti SEP-IRA custodial account to another SEP-IRA custodial of mine at Etrade, I was issued and inadvertently cashed a residual dividend payment from Equiniti (which was made out to my name, but with the custodian designation as well), which reflceted a dividend payment that occurred after the share transfer date.  Equiniti then issued me a 1099-B, when it should have issued a 1099-R to me reflecting an IRA distribution. But Equiniti says it cannot/does not issued 1099-R forms.  How do I fix or explain the erroneous form to the IRS?

0 2 1160
2 Replies
Expert Alumni
Mar 10, 2025 1:34:24 PM

You received a residual dividend payment, which can be reported on Form 1099-B. If it had been deposited into the new SEP-IRA, you could have reported it as an IRA distribution. In this case, you will need to include the dividends on your tax return.

Level 3
Mar 10, 2025 2:17:07 PM

Okay, yes, and thank you.  And I assume from your answer that it will be reported in the 1099-B section of TurboTax, since that was the form on which the residual payment was reported.  Thanks again.