2084
Level 3

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.

 

 

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