Excess Contribution Problem
A person’s brokerage statement had IRA and non-IRA money all on the same statement. He inadvertently rolled all monies into another IRA with that custodian. The next year he had that non-IRA money distributed back out of the IRA to correct the problem.
Custodian refuses to issue a 1099R saying it was a corrective distribution of an excess contribution.
What should be done, or what can be said to the custodian?
Thanks so much,
Lee
Permalink Submitted by Alan Spross on Wed, 2012-08-15 21:26
Lee,
How did this happen? Was it all done by direct transfer, by indirect rollover, or some combination of the two? If he had check writing on the taxable account, a check would be limited to the balance in that account.
By not issuing a 1099R, it sounds like an admission of responsibility on the custodian’s part. Was the statement itself incorrect?
Permalink Submitted by Lee Martinson on Wed, 2012-08-15 21:56
Alan,
Thanks for those questions, I’ll have to find out and get back to you.
Lee