topic How do I report a canceled duplicate RMD that the company that bought my IRA sent the IRS a 1099-R for? Taxes were paid, but I didn't receive distribution. in Retirement tax questions

How do I report a canceled duplicate RMD that the company that bought my IRA sent the IRS a 1099-R for? Taxes were paid, but I didn't receive distribution.

hammer71541 — Mon, 09 Mar 2026 06:11:53 GMT

I received original RMD in January from original investment co. During 2021, my IRA was sold to another investment co and they sent a check for an RMD also. I refused the payment and it was cancelled. But a 1099-R was still sent to the IRS showing that I received the distribution and paid taxes on it. They said they can't reverse the tax w/h for 2021.

Re: How do I report a canceled duplicate RMD that the company that bought my IRA sent the IRS a 1099-R for? Taxes were paid, but I didn't receive distribution.

fanfare — Sun, 13 Feb 2022 11:33:22 GMT

You can ask for a waiver of the 60-rule for redepositing an IRA distribution of withholding, when it is due to a custodian error or for other allowed reasons.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-relating-to-waivers-of-the-60-day-rollover-requirement

Re: How do I report a canceled duplicate RMD that the company that bought my IRA sent the IRS a 1099-R for? Taxes were paid, but I didn't receive distribution.

fanfare — Sun, 13 Feb 2022 11:39:01 GMT

In lieu of the waiver, enter a distribution of <tax> and a tax withheld of <tax>.

Mark it as a Corrected 1099-R, which you should actually get anyway.

Re: How do I report a canceled duplicate RMD that the company that bought my IRA sent the IRS a 1099-R for? Taxes were paid, but I didn't receive distribution.

fanfare — Sun, 13 Feb 2022 11:42:42 GMT

An incorrect 1099-R is not reported, once you have received the Corrected 1099-R.

Re: How do I report a canceled duplicate RMD that the company that bought my IRA sent the IRS a 1099-R for? Taxes were paid, but I didn't receive distribution.

dmertz — Sun, 13 Feb 2022 14:41:30 GMT

The investment company correctly treated this as a distribution and rollover. To make up for the amount withheld for taxes you would have had to substitute other funds and then get back any excess tax withholding when you file your 2021 tax return. Any portion of this distribution not rolled over remains distributed, subject to tax and possible early-distribution penalty.