Should I override the system or have the client get a corrected 1099R?
Best Answer Click here
Get a corrected one. To me it is obvious you can't tax more than the gross distribution. I haven't had one like that, but I have seen the withholdings more than the gross amount, and I always get a corrected one. Just my opinion.
It helps to give all the details. Which account type, which codes in which boxes? Employer plan, personal account, annuity, etc?
Get a corrected one. To me it is obvious you can't tax more than the gross distribution. I haven't had one like that, but I have seen the withholdings more than the gross amount, and I always get a corrected one. Just my opinion.
I did miss a little bit of information that could help I guess... The reason I would assume the number to override would be the Gross Distribution is for 2 reasons, 1, the system is showing that as the error, 2, the State distribution matches the Taxable amount. Here's a shot of the form in question.
I think this is the route that I will take - tomorrow as not too many other people are working today. Unless somebody else comes up with a reason that the 1099R could actually be correct.
I should add that the recipient of the 1099R passed away in September of 2022. I will have to ask the widow if she had to pay anything back, that could be where the error occurred if it is in reality an error.
"passed away in September of 2022"
Ask if there were any survivor benefits paid out, such as for health care coverage. Ask about in-plan rollovers or conversion to an annuity or LTC policy. Ask if something vested because of death as opposed to a regular schedule, so it isn't reported on the final W2. Ask them to find out whatever else happened that would explain this. Perhaps there was a loan out. It might not be wrong. It might not be coded properly, but the amounts might be right.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.