sepp distribution too much by one month of state taxes
L1: sepp distribution too much by one month of state taxesMy wife started her sepp in March of 2015 with $549,840.39. She took 12 months of distributions. Interest rate used was 2.1%. Distributions were taken monthly at $2007.57 or $24,090.84. Distributions were made on the first of the month (a mistake on my part). My wife is 53 yrs. old. She was born on Dec. 6, 1962. The 1099-R listed 13 payments. The custodian was able to correct the 1099-R to 12 distributions except for the state tax withholding. They could not correct the state tax withholding because the state only gives them 5 days after Jan. 1 to send in a corrected form. The over payment to the state is $120.45. Can i send that amount back in as a rollover contribution and avoid the penalty?2016-02-11 15:35, By: pj, IP: [22.214.171.124]
L2: sepp distribution too much by one month of state taxesAre you saying that the 1/1/2016 distribution was made in the last week of December? If so, very surprising that the custodian was willing to change the 1099R. The 1099R now shows only 120.45 the 12 month total? If so, she is still within 60 days of receipt of that last distribution and could do a rollover of that amount using other funds IF she still has a rollover available under the new rules.
However, a total understanding of what the custodian did to change the 1099R is needed, or this problem could just re surface a year from now. Has the monthly distribution date been changed to around the middle of the month? Did the custodian intend to report the late December distribution in 2016 meaning that only 11 more payments can be made in 2016?
2016-02-12 01:54, By: Alan S, IP: [126.96.36.199]
L3: sepp distribution too much by one month of state taxesThere were 3 or 4 additional posts to this thread that seem to have disappeared……………2016-02-16 16:27, By: Alan S, IP: [188.8.131.52]