1099R with larger Taxable Amount than Gross Distribution.

[FTPhil]

Should I override the system or have the client get a corrected 1099R?

[BobKamman]

How would you know which number to override?

[qbteachmt]

It helps to give all the details. Which account type, which codes in which boxes? Employer plan, personal account, annuity, etc?

[Terry53029 · Accepted solution]

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.

[FTPhil]

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.

[FTPhil]

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.

[FTPhil]

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.

[qbteachmt]

"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.