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alwh99
New Member

Part of an IRA rollover was mistakenly listed on my 2018 form 1099-R as a Gross Distribution. The rollover was fully reinvested as an IRA. How do I correct this?

The total IRA balance was rolled over Dec. 2017. An additional credit for Dividends was added to the now empty account on Jan. 2018. That amount was then also Rolled over. That added rollover from the account was mistakenly labeled as a Normal Distribution, and listed as taxable. All of the funds, including the later added funds were returned to the IRA  well within the 90 day limit. The added funds will be taxed twice if I pay taxes now and then when they are eventually withdrawn. How do I report this on my tax forms?

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1 Reply
Carl
Level 15

Part of an IRA rollover was mistakenly listed on my 2018 form 1099-R as a Gross Distribution. The rollover was fully reinvested as an IRA. How do I correct this?

It was not a mistake. Enter the 1099-R *exactly* as printed, and then "pay attention" to the screens that will follow so you can identify what you did with the money. That which was rolled to another qualified retirement account will not be taxed and/or penalized then.

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