ESOP Distribution 1099-R
I worked for an ESOP company and retired in 2022. The company was not publicly traded and each year, I was given shares of company stock. I paid zero for them and could not buy shares. My shares of stock were “liquidated” and I rolled over the final distribution to my IRA in December of 2022. I just received a 1099-R . Box 1 shows less than half of the amount I received in December. Why would that be?
Permalink Submitted by Alan - IRA critic on Tue, 2023-01-31 14:43
What is the code in Box 7? Is the total distribution box checked?
Permalink Submitted by Scott Wiederin on Tue, 2023-01-31 20:22
In box 7 is the code: G
Permalink Submitted by Alan - IRA critic on Tue, 2023-01-31 20:36
OK, but could the rest of the balance have been distributed to you as NUA shares, in which case there will be aother 1099R coded 7 with dollar amounts in Boxes 2a and 6. Within a week you should have all 1099R forms issued reporting all 2022 distributions from the ESOP. Another possibility is that the ESOP limits the amount you can distribute in a single year. In the end you will probably have to call the plan administrator for an explanation.
Permalink Submitted by Scott Wiederin on Wed, 2023-03-01 20:52
I received a second 1099-R. This one had the actual amount I rolled over to my IRA. The only difference on this second 1099 is that for 2b, total distribution was checked. The first 1099 dis not have that. I am at a loss why I have the two 1099’s and what do I do when it comes to my 2022 taxes?
Permalink Submitted by Alan - IRA critic on Wed, 2023-03-01 21:54
Does the second 1099R indicate “corrected” anywhere on the form? Look closely.
Permalink Submitted by Scott Wiederin on Thu, 2023-03-02 12:06
Neither of these 1099’s are marked as corrected. After a closer look, each of these has a different account number and tracking number.
Permalink Submitted by Alan - IRA critic on Thu, 2023-03-02 14:08
There must have been an earlier distribution in the year. You will have to call the plan for an explanation of the different account numbers and the earlier 1099R reflecting a partial distribution. Perhaps there are two accounts that reflect shares that can be fully distributed with a second account for shares that must be distributed over different time periods.