My client received a 1099 R showing a gross distribution of $58,000.00. He had actually taken out $50,000.00 from his IRA in October 2020 for personal reasons and made a contribution of $50,000.00 in November. I have the Documentation.
I am saying that the Bank needs to correct the 1099 R to read gross distribution of $8,000.00 and his personal banker says that I should be able to correct it through the tax program. I have looked through many of the worksheets available and the best I have come up with is a $3,000.00 penalty for excess contribution. I still feel that it is the banks responsibility to correct the 1099-R but please let me know if I am wrong about this and let me know the secret to correcting this through the program. Thanks so much for any assistance or opinions.