Possible to file a 1099-R correction electronically or does it have to be done over the mail?

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kareysue
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Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by kareysue »

Last year I filed a 1099-R for a rollover from Solo 401k to traditional IRA. However, while filing the 1099-R there was a mistake in the total amount as it does not match the figure on the 5498. So I need to make a correction so it would match the 5498 number, I found some websites that can file 1099-R corrections, but not sure if they understand what I am trying to do and just wondering if it has to be done by mail or can it be done electronically?
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Kevin M
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by Kevin M »

Not sure what you're asking. You don't file a 1099-R; you use the information on the 1099-R in preparing your federal and state income tax returns, and you file the tax returns. The 5498 is not used directly for income tax return preparation, but the IRS can use it to check what you reported on your tax return.

When you say you did a rollover, do you mean a direct transfer between the 401k custodian and IRA custodian? Or was this an actual rollover in which you received a check from the 401k, and within 60 days put the full amount into the IRA?

If the 1099-R was incorrect, a corrected 1099-R should be issued, and you would file amended tax returns (federal and state).

I think you need to provide more details on exactly what happened.

Kevin
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by bertilak »

I was told by H&R block that amended returns must be filed by mail. A corrected 1099 would require an amended return.
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Alan S.
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by Alan S. »

Mail it with a 1096. Here are the IRS 1099 Instructions:
H. Corrected Returns on Paper Forms
To file corrections for electronically filed forms, see
part F and Pub. 1220.
If you filed a return with the IRS and later discover you
made an error on it, you must:
Correct it as soon as possible and file Copy A and Form
1096 with your Internal Revenue Service Center (see part D).
Furnish statements to recipients showing the correction.
When making a correction, complete all information (see
Filing corrected returns on paper forms, later).
Do not cut or separate forms that are two or three to a
page. Submit the entire page even if only one of the forms on
the page is completed.
Do not staple the forms to Form 1096.
Do not send corrected returns to the IRS if you are
correcting state or local information only. Contact the state or
local tax department for help with this type of correction.
To correct payer information, see Reporting incorrect
payer name and/or TIN, earlier.
Form 1096. Use a separate Form 1096 for each type of
return you are correcting. For the same type of return, you
may use one Form 1096 for both originals and corrections.
You do not need to correct a previously filed Form 1096.
CORRECTED checkbox. Enter an “X” in the corrected
checkbox only when correcting a form previously filed with
the IRS or furnished to the recipient. Certain errors require
two returns to make the correction. See Filing corrected
returns on paper forms below to determine when to mark the
“CORRECTED” checkbox.
Account number. If the account number was provided on
the original return, the same account number must be
included on both the original and corrected returns to
properly identify and process the correction. If the account
number was not provided on the original return, do not
include it on the corrected return. See part L.
Recipient's statement. You may enter a date next to the
“CORRECTED” checkbox. This will help the recipient in the
case of multiple corrections.
Filing corrected returns on paper forms. The error
charts, later, give step-by-step instructions for filing corrected
returns for the most frequently made errors. They are
grouped under Error Type 1 or 2. Correction of errors may
require the submission of more than one return. Be sure to
read and follow the steps given.
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Kevin M
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by Kevin M »

Alan, based on the context of the OP, I don't think the question is about filing a corrected 1099. I don't think the OP issued a 1099 to someone else.

Kevin
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Alan S.
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by Alan S. »

Kevin M wrote:Alan, based on the context of the OP, I don't think the question is about filing a corrected 1099. I don't think the OP issued a 1099 to someone else.

Kevin
Kevin, she was apparently functioning as the administrator of her solo K, and rolled out funds to an IRA. She issued a 1099R reporting a rollover for an incorrect amount under her SSN, and is endeavoring to correct that 1099R. She needs a corrected 1099R in order for her personal 1040 to be correct. The IRA custodian has already issued a non matching 5498.
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kareysue
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by kareysue »

Hi Alan,
Yes you are correct, I did not file my personal taxes yet and had already prepaid my taxes and file extension (luckily I did because I expect something like to happen so I wanted to be safe before filing)
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kareysue
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by kareysue »

There is a website called tax1099.com that lets you file corrected 1099-r electronically, have you heard about this and can it be done? According to instructions it seems it can be done by mail but mentions nothing of filing electronically?
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kareysue
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by kareysue »

Hi Alan,
The site finally submitted the correction for me. I just want to make sure the Gross distribution box under box one on the 1099-R for my solo 401k should be the exact same number as the total rollover contribution amount for the 5498? Thanks
Topic Author
kareysue
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by kareysue »

Hi,
just wondering if anyone else knows the answer to this Thanks
Alan S.
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by Alan S. »

Assuming a 100% rollover, the amount will be the same if cash is distributed.

If the distribution includes securities, the value of those securities will change between the time the plan does the final valuation tally and the receipt of the securities by the IRA custodian. The IRS is used to modest differences in the distribution and rollover amounts. In addition, when a 60 day rollover is done, there are several days in which the valuation of the assets rolled over can change when all the assets are not in cash.

For larger differences, the IRS might ask for an explanation if you report a full rollover, but the 5498 reflects a much lower amount.

There is no particular coordination between the distributing entity and the IRA custodian to compare values. The 5498 should show the value of the assets received ASAP after receipt by the IRA custodian.
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kareysue
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by kareysue »

Hi Alan S,
Thanks for your explanation. But just wondering since my 1099-R and the 5498 differs by a couple hundred dollars and does include Vanguard mutual funds, is it essential that I do a correction to a 1099-R or leave it the way it is? Because in my case, the 5498 is about a couple hundred dollars more than my 1099-R. It is a 100% rollover from Vanguard Solo 401k to a Vanguard Rollover IRA. The difference is due to dividends that accrued but did not get paid until after the rollover date
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by Alan S. »

A trailing dividend rollover should have been picked up by the IRA 5498 form if it was received in the same calendar year. Perhaps in this case the dividend was received in the following calendar year and would not be reflected on the 5498 until the following year. This is one of the situations where there is no error but there will not be a dollar match. If this is what you think happened, then no further action is necessary, but keep your documentation in the unlikely chance that the IRS would inquire.
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kareysue
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by kareysue »

Hi Alan,
Thanks again for your help.
Actually the amount on the 5498 is higher than the amount on the 1099-R which I had created. The reason why the amount on the 5498 reflected a higher amount of the rollover is because when the transfer of the mutual fund took place there were accrued dividends and capital gains to the mutual funds which did not reflect on the statement. The transfer took place on December 27,2014, So that was why I was wondering if I even need to file a 1099-R correction so it would match the data on the 5498 in order to avoid any potential irs audit. And if there was any potential consequences of filing a correction.

In my case, the rollover custodian and the solo 401k custodian was both with vanguard so there was no 60 day rollover, it was immediate transfer of the mutual funds from custodian to custodian.
Topic Author
kareysue
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by kareysue »

Hi,
just wondering if anyone else knows the answer to this Thanks
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) forum (tax form correction).
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Re: Possible to file a 1099-R correction electronically or does it have to be done over the mail?

Post by tfb »

kareysue wrote:In my case, the rollover custodian and the solo 401k custodian was both with vanguard so there was no 60 day rollover, it was immediate transfer of the mutual funds from custodian to custodian.
Why are you fiddling with this instead of telling Vanguard they need to straighten it out? If their 1099-R is wrong, have them correct it.
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