pension lump sum from company went to wrong account

[txmet]

i took a lump sum distribution from my pension, funds were supposed to go  directly to my ira but went to regular brokerage account instead. the brokerage then had to do withdrawal of funds from brokerage and deposited them in ira,  THe brokerage will not consider it a direct rollover since the funds went to the brokerage account first 

the company reporting as a direct rollover but will it  be indirect since the funds were then moved from the brokerage to ira.  the 1099 will have dist g but it the brokerage will not show it that how.  how to fix, the company refused to change the code

[Opus 17]

You have to go by what actually happened, it is an indirect rollover.  However, as long as you completed the process within 60 days, no tax is owed.  You just can't do another indirect rollover for 365 days.

You have two options.  Simplest is to simply report the 1099-R with whatever it says, even though it is technically incorrect.  More complicated is to report the rollover using a "substitute 1099-R" that you create in Turbotax that uses the correct codes.  I would probably just report whatever the 1099-R says, your tax return won't be any different.

[dmertz]

As long as it was done by the 60-day rollover deadline, just make sure that the Form 5498 from the brokerage will show it as a rollover contribution and not a regular contribution.  A rollover contribution is shown the same on Form 5498 whether the rollover was direct or indirect.