60 Day window overlaps calendar years
A client took a distribution in late 2023 and then returned those funds to the IRA within the 60 day rollover window in February 2024. His 1099 does not reflect the return of funds, only the total distribution. Is an amended 1099 then to be requested? What is the process when a rollover overlaps calendar years? I’ve not had this happen before.
Thank you!
Permalink Submitted by Alan - IRA critic on Wed, 2024-04-03 23:24
It’s done like any other in year rollover. The 1099R distribution and rollover is reported on the 2023 return and will not be taxed. The 1099R is not amended. As long as the rollover was done in 60 days (and taxpayer had a rollover available), it’s up to the IRS to pair up the 1099R with the 5498 issued one year later.