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1099R

  • 1.  1099R

    Silver Most Valuable Member
    Posted 04-03-2019 10:01
    Try this:

    Taxpayer took $38000 out of retirement account to pay for a funeral in 2017
    Marked as early distribution

    Never mentioned it to me until now.
    and tells me that she redeposited $30,000  to Fidelity within 60 days so she thought it wasn't taxable?

    We need to amend 2017 but how do we fix what happened to the funds as I'm imaging the taxes and 10% penalty should only be on the $8000 she didn't return and current paperwork suggests she  pays taxes and penalty on full $38,000.


    Alfonso J. Mollica CPA




  • 2.  RE: 1099R

    Posted 04-04-2019 07:55
    Get the paper work that shows the date of the withdrawal and the paperwork from Fidelity that shows the date of the re-deposit.  If they're within 60 days of each other simply submit the paperwork with the amended return indicating on $8,000 is taxable, the balance is a rollover.

    Be careful on the 60 day count.  July 1st to September first is exactly 2 months but it is also 62 days.

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    Donald Rifkin
    DONALD W. RIFKIN, CPA CFP PC
    Hackensack NJ
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  • 3.  RE: 1099R

    Silver Most Valuable Member
    Posted 04-04-2019 08:38
    Thank you for the swift response.

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    Alfonso Mollica
    Mollica Taxes & Accounting
    Levittown NY
    516 597-4991
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  • 4.  RE: 1099R

    Posted 04-05-2019 09:10
    And it is 60 calendar day, not business days.  So, if the 60th day is on a holiday or day the bank is closed, you really have less than 60 days.

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    Robert Gaines CPA
    ROBERT N. GAINES, CPA
    Temple TX
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