1099-R Misleading

Forum|Forum|3 months ago
April 1, 2026
3 replies
13 views

Form 1099-R with Code 1 (early distribution) and Box 2a (taxable amount) are checked. However, entire transaction was a nontaxable rollover IRA. How to exclude amount from taxable income, and should recipient request a corrected 1099-R?

ProSeries Basic

BobKamman

Level 15

Was it a trustee-to-trustee transfer, or did the taxpayer receive a check and then deposit the funds in a new account within 60 days?

A

aedwanAuthor

Level 5

Thanks BobKamman! It was a trustee-trustee transfer! If it was a check and deposited within 60 days, doesn’t it still qualify for exclusion!

Just-Lisa-Now-

Intuit Community Champion

Yes, if she got a check and put it u=into anther retirement account she would qualify, I generally ask to see the statement for the account that it went into, sometimes people are ignorant and put inti the wrong type of account or they miss the 60 day window.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

TaxGuyBill

Level 15

On the 1099-R worksheet, scroll about 2/3 of the way down and fill in the Rollover section.

qbteachmt

Level 15

The issuer of the 1099-R issues it for money Out. They don't necessarily know nor are responsible for what happened next. There is no error in the 1099-R.

The preparer uses the code provided in the program to indicate the situation which occurred, and you know by doing due diligence.

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