Got a wrong state on 1099-R (401K distribution)
In 2014 I changed the job and moved to another city within same state (MD)
Since I was living in a temporary place and was looking for a permanent one I didn’t want to use the temporary address for my mail so I changed the address on my 401K account to my parent’s address who live in another state (NY).
And I requested a distribution from my 401K shortly after as a cash distribution to me and later rolled over most of it to IRA account. Most, but not all and now I have to pay taxes on the part I didn’t rolled over.
So now I got 1099-R with the NY address. Where I don’t live for many years. I worked and lived in MD whole 2014.
How do I correct this? I called Vanguard and they opened an inquiry (or whatever it is called) and so far no answers.
Is it possible to make a correction to 1099-R form?
Is state of NY has any legal rights to claim I owe them taxes considering I neither lived or worked there and won’t be filing NY state tax return?
Thanks.
Permalink Submitted by Alan - IRA critic on Thu, 2015-02-19 02:44
No, but they might still contact you and then you would have to provide documentation that you lived in MD the entire time. Were any NYS states withheld or just federal? I doubt that VG (Issuer of the 1099R?) will issue a corrected 1099R since the 1099R they issued was not incorrect given the info they were given. Note that you will also owe a 10% penalty in addition to taxes on the federal amount withheld as well as the amount you received that was not rolled over.
Permalink Submitted by Paul Markovsky on Thu, 2015-02-19 03:39
No State taxes were withheld. I know about 10%. Thanks.