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I have a 63 year old client that withdrew $60,000 from his IRA for home improvements and other things. He discovered he didn't need that much so within 60 days of his withdrawal, he deposited $30,000 back into his IRA. He received his 1099-R and it shows in Block 1 and Block 2a $60,000. I asked him to contact his financial advisor to see if they were going to provide a corrected 1099-R and they told him no but provided a transaction printout showing the $30,000 payback and type of transaction "Rollover" . His financial advisor said there was a place on "the form" that the tax preparer can annotate on part of the distribution is reported as taxable. I tried changing Block 2a and that didn't change the return and I tried using both 7 & G in block 7 and that changed everything to Roll Over and nothing taxable. This is new to me - anyone have an idea or do I need to contact the financial advisor?
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