L1: Form 1099RMy current 1099R is coded 2. After 5years and 59.5. Do I change it to Code 1 or something else.
Thanks Ron2014-02-11 15:16, By: Ron, IP: [188.8.131.52]
L2: Form 1099RYOU cannot change anything on the form 1099-R because you did not prepare it. It could only be “corrected” by the issuing financial institution. A copy of the 1099-R is sent by them directly to the IRS, in addition to the copies that come to you. If YOU change the code on the form, and attach it to the tax return, you should expect to get a nasty letter from the IRS, and probably an audit notice.
The code 2 would be for the payments while you were taking EARLY DISTRIBUTIONS. There should be a separate 1099-R issued AUTOMATICALLY by the financial institution for distributions after you have completed the 5 yr/59.5 time-frame.2014-02-11 16:44, By: dlzallestaxes, IP: [184.108.40.206]
L3: Form 1099RWhat is the distribution amount on your 1099R? If it is the same as the distribution total you took from that IRA account, the 1099R is technically incorrect if some of the distributions were taken after 59.5. But I would not bother to correct it because 5329 is not designed to change one penalty free code to another. If the total distribution shown matches the distributions you took prior to 59.5 and there are other distributions, then you should receive another 1099R coded 7 for the post 59.5 distributions.2014-02-11 17:01, By: Alan S, IP: [220.127.116.11]