wrong allocation year for ira contribution
My custodian incorrectly allocated a contribution for tax year 2019 rather than 2018. Can they file a corrected form 5498? they state they cannot.
My custodian incorrectly allocated a contribution for tax year 2019 rather than 2018. Can they file a corrected form 5498? they state they cannot.
Permalink Submitted by Alan - IRA critic on Fri, 2022-04-08 19:48
They could if it was totally clear that they were 100% at fault in reporting the contribution for 2019, but still may refuse due to the very long delay in bringing this to their attention. Most custodians use default rules for reporting the contribution year for 1/1 to 4/15 contributions if it is not specified, but taxpayers need to verify the contribution year immediately after making it as their IRA statements should show the contribution year. This and similar errors are much more likely to be corrected or to be correctible when they are reported immediately. It is not clear whether they actually cannot correct this, or will not correct it, since that depends on the details of the transaction, who or what caused the error, and custodian policy for late corrections.