Taxpayer changed IRA custodian late last year. The taxpayer requested his custodian to make only the required minimum distribution in 2019. In tax year 2019, the taxpayer’s IRA custodian made distribution in excess of the RMD and withheld taxes on the amount. There are three distributions in total that resulted in the excess amount. The taxpayer was unaware of this until recently, when he was informed of the accounting error by his financial advisor who overseas his account. The discovery date of the error is past the 60-day rollover date. Excess amount distributed is $50,000 out of which $10,000 was withheld in taxes. The taxpayer intends to issue a personal check of $40,000, amount deposited in his account back to the custodian to correct the error.
Is the taxpayer required to send a certification of later rollover to contribution to the IRA custodian?
Will the amount on the certification be entire amount of $50,000?
Is there a process by which the custodian can request refund of the excess erroneous withholding or is the only way to claim excess tax withheld is on the taxpayer individual tax return?