My broker sent a 1099-r which included 2015 dist and 2016 dist. What do I do?

[dmertz · Accepted solution]

That seems unlikely.  a 2016 Form 1099-R reports distributions made in 2016, so if your Form 1099-R shows the total of two distributions, unless the broker made a mistake on the Form 1099-R, you received both of these distributions in 2016 and they are therefore taxable in 2016.

If this is in regard to an RMD required for 2015 but received in 2016, this does not change the fact that this income is taxable on your 2016 tax return, not your 2015 tax return.

If your Form 1099-R is truly erroneous, contact the broker to obtain a corrected Form 1099-R.

[dick3974]

1the first dist is not needed to be paid until March 31 of the next year. I paid taxes on the 2015 dist. Now it looks like I will have to pay taxes on the 2015 dist. twice

[dmertz]

You must amend your 2015 tax return to remove this 2016 income from your 2015 tax return and obtain a refund.

You must report and all of this income on your 2016 tax return.  It is all 2016 income, not 2015 income.

[dick3974]

No, this was my first rmd. I am given until march of 2016 to withdraw (my first)  2015 rmd.(check the law) My second rmd must be withdrawn by 12/31/2016. So, both withdrawals occurred in 2016. So,my 1099R showed both rmd's,even tho I lawfullly had paid the tax on the first rmd as part of my 2015 taxes.

[VolvoGirl]

Right.  We know.  But since it really happened in 2016 they both go on your 2016 return.  You just got to wait to take the first RMD until 2016.  So you have 2 to report this year.

[dick3974]

wait, why isn't this like an IRA deposit. I put it on my 2015 tax return, but do not need to fund it until April 15 of 2016. With the IRA RMD, I paid the taxes on it in 2015, but did not have to actualy withdraw it until April 1. That is the way I read the law.

[fanfare]

It is not symmetrical in that way. You can't pay tax on a distribution event that did not occur in the tax year.

[fanfare]

File an amended 2015 return for refund  but don't be waiting on it to pay your 2016 tax. It is unlikely to be processed before tax due date of April 18th.

[macuser_22]

Wait and back up...  If you did not take the distribution until 2016, then just why do you think you paid any tax on it in 2015?   You pay the tax on the year that you actually take the distribution in.

A RMD is a *withdrawal* from a IRA not a deposit (contribution) to an IRA.

Just what did you put on your 2015 tax return? If you did not actually take any money out in 2015 and have a 2015 1099-R then nothing should have been on the 2015 tax return.  You only report a IRA distribution in then year actually taken.

[VolvoGirl]

Because the IRS is nice for once and lets you deduct the contribution even though you don't contribute until March of the next year.  That's so you can use your tax refund to help make the contribution.  Nothing to do with distributions.  You can't report a distribution you didn't actually take until the next year.

How did you report the distribution on your 2015 return without the 1099R form?  They are tricky to enter even when you have the actual 1099R.

[dmertz]

To expand on fanfare's comments, there is a specific provision in the tax code that allows a contribution made after the end of the tax year but before the regular due date of the tax return for that year to be deemed as having been made on the last day of the tax year.  There is *no* similar provision regarding distributions of RMDs.  RMDs are taxable on the tax return for the year in which the distribution was actually made.

A distribution that satisfies an RMD has no special status.  It's reportable and taxable the same as any other regular distribution.  Properly satisfying the RMD only means that you do not have to pay an excess accumulation penalty.