Can Fidelity issue a Corrected 1099-R due to the incorrect 1099-R they sent to the IRS? Our AGI will go up & SS down. What to do? Fidelity does not answer their phones?

[dmertz]

macuser_22's example and my previous reply assumed that you substituted other funds to complete the rollover of the entire distribution.  As VolvoGirl said, if you did not roll over the portion withheld for taxes, that portion remains distributed and taxable, increasing your AGI by the amount of the tax withholding.

[Trabia78]

Hi to All Who Helped Us:  Doug needs to call Fidelity Investments and hammer them to issue us a Corrected 1099-R.  We finally got through to TurboTax tax expert and he said that we had 60 days within which to rollover the 401K money to an IRA.   And that Fidelity should provide us a Corrected 1099-R form.  The bottom line is that Fidelity Investments sucks.  We will transfer all of our money, which isn't much, out of Fidelity.    Take care to all, and a million thanks to all of you for helping us.  You are THE BEST.  Donna

[mjpalluck]

Re: Can Fidelity issue a Corrected 1099-R due to the incorrect 1099-R they sent to the IRS and the CRA? 

I requested a withdrawal from my IRA of $6,000, instead they withdrew $60,000 (plus sent $6700 to the IRS for withholding), but when I saw it they quickly returned $54,000 as rollover  back to my IRA, but the 1099 shows the $60,000 plus as income!!??  The IRS and CRA will see the wrong amount as taxable income.  What do I do to correct it when Fidelity refuses to admit the mistake (saying the rollover "corrected" the error) and they will NOT notify the IRS of any error on their part.  Now how do I proceed????

[dmertz]

@mjpalluck , based on the numbers that you provided, I assume that the Form 1099-R shows $66,700 in box 1.  In TurboTax you must enter the Form 1099-R as received, indicate that you moved the money to another retirement account (or back to the same account), that you rolled over part of the money and that you rolled over $54,000.  The result will be that $66,700 is included on Form 1040 line 4a, $12,700 is included on box 2a and the ROLLOVER notation will be present.  The $6,700 shown in box 4 of the Form 1099-R will be credited on Form 1040 line 25b to be applied against the tax liability determined on your tax return.

(If they instead withheld exactly 10% for federal taxes, I would expect the amount included on line 4a would be $66,667 and the amount on line 4b would be $12,667.)