One Roth rollover, two identical 1099-Rs

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
TedSwippet
Posts: 1877
Joined: Mon Jun 04, 2007 4:19 pm

One Roth rollover, two identical 1099-Rs

Post by TedSwippet » Mon Feb 12, 2018 11:20 am

I executed a single rollover last year, from my pre-tax 401k into a Roth IRA. Aside from that, no other 401k or IRA distributions of any type. For some reason, my Vanguard 401k account now shows two identical 1099-R forms reporting this one rollover (correctly -- code G, taxable amount equal to gross distribution). There was a four day gap between the first and the second appearing in my account.

If both forms somehow find their way to the IRS, is there any chance of this duplication tricking them into thinking there were two rollovers rather than one?

And a bonus question :-). I am a US non-resident alien. Should I also expect a 1042-S also reporting this rollover? If yes, any chance that might trick the IRS into thinking there were in fact two (or three!) distributions from my 401k, rather than just one?

Alan S.
Posts: 7858
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: One Roth rollover, two identical 1099-Rs

Post by Alan S. » Mon Feb 12, 2018 10:28 pm

Can't help with the bonus -
but I wouldn't worry about the incorrect duplication of the 1099R forms. The IRS instructions are to combine all identical coded distributions for a year on a single 1099R. So as long as the Box 7 codes and everything else including the issuer is an exact copy, the IRS should know that this is a duplicate. That said, the small chance that the IRS would still send you an inquiry could further be reduced by including an explanatory statement with your return that Vanguard issued two copies of this 1099R and they are duplicates.

It comes to mind that if you asked Vanguard to rescind one of these forms such as sending out a corrected one marked 0 in all boxes, it may not reduce the chance of an inquiry much as the IRS could be as much confused by the corrected one as they were with the two originals. They might think that both were to be rescinded. So probably not worth the effort to contact Vanguard and ask for some sort of revision at it might get screwed up worse.

TedSwippet
Posts: 1877
Joined: Mon Jun 04, 2007 4:19 pm

Re: One Roth rollover, two identical 1099-Rs

Post by TedSwippet » Thu Feb 15, 2018 5:38 pm

Thanks for the reply, Alan. I guess from the lack of 'me-too' responses that nobody else has experienced this Vanguard weirdness, just me.

Vanguard 1042-S forms are due out in "late February". I will await mine with... interest.

Post Reply