How to enter 1099-R info for Client recieved for an IRA distribution, but returned 1/2 of it during 2022. 1099-R has original distribution. How to enter adjusted amount?

Forum|Forum|3 years ago
February 10, 2023
2 replies
25 views

Client recieved 1099-R for 41,000, (IRA distribution 8/12/22). Client then returned $18,000 to the same account becuase the fund were not needed on 08/22/22. The 1099-R shows distribution of $41,000. How do I make adjustement for the correct amount to account for the funds that were returned to the IRA account?

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ljr

Level 9

did they return it within the 60 day window? If so, complete the bottom of the 1099-R input for a partial rollover. Make sure they keep copies of the date it was received and paperwork showing date it went back in and warn them the IRS letter is coming.

T

TSW Author

Level 3

Where on the 1099-R worksheet would I make the adjustment?

qbteachmt

Level 15

Scroll down in the worksheet to the rollover section, if this was rolled over. You are not entering an adjustment. You are assigning and entering and selecting whatever specifically applies to the reality of the situation.

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qbteachmt

Level 15

"The 1099-R shows distribution of $41,000."

Because they don't know what the client did with it, typically, and it could have been rolled into another qualifying account, converted, spent, etc.

"How do I make adjustement"

Yes, you indicate how it was handled in reality. Just make sure there is no treatment of the returned amount as a 2022 contribution (form 5498) and signify this was rolled over.

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