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Screwed up 1099-R

Catavenger

Catavenger

New member
During the first part of Dec. 2014 I moved money from an IRA (Individual Retirement Account) I had in a bank to an IRRA ( this is similar to an IRA but is in stock ) in a large investment firm. I was told by a representative at this firm just to do this via a cashiers check made out to myself from the bank. Then give them the check. It so happened that the term for that IRA was up in Nov. 2014. A person has a certain number of days (60 I believe) to roll over money from a retirement account to another.

The Bank I moved money from sent me a 1099-R form.
A 1099-R form is used to show distribution from retirement accounts. This form can be used to report distributions from:
IRA's, Pensions,Annuities etc.
However nowhere on the 1099-R I was sent does it show that it's rolled over to another retirement account. It looks like the money just went in my own pocket.

I called the investment co. (where I set up the IRRA) and explained the situation. They said that I needed to contact the bank for a new 1099-R. I had to explain that since I just got money from the bank via cashiers check made out to me (that's the way I was told to do it) there is NO way that the bank would know where it went.

The investment firm said they would send me more paperwork. Wish me luck.

Oh I forgot to tell you that right about the time I was setting up the IRRA the first representative I talked to at the investment firm vanished. I don't know if he was fired or what?
 
That sucks. Good luck not getting hit with the distribution. I did a similar thing 7 years ago, but we had the institutions make the transfer from one to the other. Never got a 1099.
 
Were I you I'd check out that new firm ... thoroughly. The way this was done doesn't sound kosher at all. Good luck.

 
rback33 said:
Wow. This could be a tough battle...
Click to expand...

Indeed, a tuff battle. You won't have problems this year, but just about July of 2016 you'll get a letter from the IRS demanding payment of taxes on the "distribution" ... based upon an unusually high tax rate.

Don't you have documentation of your rollover into the new IRRA? ... properly dated and in the exact same amount as the distribution from the old IRA?
 
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