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Level 1
April 6, 2022
Question

Taxpayer is 82 yrs old. mistakenly ACH'd $4K from her bank to her IRA instead of inv acct w fidelity. 1099R Box 8 received....proconnect treating as a taxable event?

  • April 6, 2022
  • 2 replies
  • 4 views
$4k was not in IRA for more 4 days before it was removed and transferred to investment account.   How do I identify this on proconnect as a non-taxable distribution?
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2 replies

Level 15
April 6, 2022

The taxpayer can try to convince the IRA custodian to reissue the 1099-R as a withdrawal of excess contributions.

Otherwise, she make a contribution to an IRA and withdrew it and there isn't anything you can do to change that on the tax return.

qbteachmt
Level 15
April 6, 2022

"$4K from her bank to her IRA"

If she did in in the same tax year and nearly immediately (no earnings), it's as if it never happened. That would make it a corrective distribution.

"Box 8"

That's Box 7 Code 8.

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