I recently did a tax-free rollover from a 401k to my IRA. After the rollover, I received a letter indicating that I needed to take a corrective distribution as I had contributed too much to the 401k in the prior year. The letter informed me to take the corrective distribution from my IRA which I did. Now I have 2 1099-R's reflecting the same distribution (one from the 401k for which no cash was received) and one from my IRA who sent me a check grossed up for earnings and taxed. To report both 1099-R's would be duplicative and results in additional tax in TurboTax. How do I report 1 of them while making sure the IRS does not think I neglected to report a 1099-R that was issued to me?
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The 1099-R from the 401-K reported a rollover, which is not taxable. When you report it in TurboTax, you will be asked if you rolled the funds over, so just say yes to that question and the distribution won't show as taxable.
The other one is taxable so report it as such and there won't be any duplication.
Thanks. I accomplished this by overriding the duplicate 1099-R I received and changing box 7 to say G - Rollover instead of code 8 - Return of taxable contribution. I then stated this was a substitute 1099-R and provided a written explanation for what happened. Does that make sense?
What @ThomasM125 was saying was that the rollover would not be taxable but the corrective distribution would be. From your last post, code G would explain the rollover from your 401(k) to your IRA. How again are you handling the 1099-R reflecting the corrective distribution, that is the amount you withdrew from your IRA?
I received 2 1099-Rs showing the corrective distribution. I am recording one of them as a corrective distribution on my taxes and the other as rollover. The reason for that is that I had already moved the money from the 401k account before I was notified that a corrective distribution was necessary. I took the corrective distribution from my IRA and received a 1099 R from them and recorded it. For some reason, the 401k firm then sent me 2 1099 forms. One showing a rollover and the other showing a corrective distribution. I view the second one they sent me as duplicative as I already recorded the corrective distribution on the 1099 from my IRA firm.
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