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1099-R and 1099-B for ESOP withdrawal

josa27
Level 1

My client who is 57 years old withdrew from her Employee Stock Ownership Plan (ESOP) due to financial hardship.  However, during tax time, she was given two 1099s - 1099-R and 1099-B for the same amount of $34,972.38. Should I input both amounts in her tax return? Wouldn't she be taxed twice for the single withdrawal?

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Accepted Solutions
qbteachmt
Level 15

You can only sell something you possess with the right to sell it; or the distributions could have meant taking possession by rolling/transferring into a different plan. The 1099-R is the distribution document and the 1099-B is the sale. The R establishes basis and any taxable amount because of the distribution, and the B gives gain or loss.

Here:

https://ttlc.intuit.com/community/retirement/discussion/i-received-1099r-and-1099b-for-the-same-esop...

 

*******************************
"Level Up" is a gaming function, not a real life function.

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1 Reply 1
qbteachmt
Level 15

You can only sell something you possess with the right to sell it; or the distributions could have meant taking possession by rolling/transferring into a different plan. The 1099-R is the distribution document and the 1099-B is the sale. The R establishes basis and any taxable amount because of the distribution, and the B gives gain or loss.

Here:

https://ttlc.intuit.com/community/retirement/discussion/i-received-1099r-and-1099b-for-the-same-esop...

 

*******************************
"Level Up" is a gaming function, not a real life function.

View solution in original post