Request to CORRECT 1099-R Roth Conversions (Calendar Year)/R-Recharacterization (Before October 15; A Roth ‘Combo’)

Submitted by Bill Vic on Thu, 2017-06-01 21:43

Is is ‘Legal’ (or NOT) for a “Payer” to correct a 1099-R (Beyond December 31 of ‘TAX’ Year), due to the Recharacterization (of R-conversion) being in a DIFFERENT Calendar Year?.

My Payer refuses to ‘CORRECT’ the 1000-R. Have an extension to FILE 2017 taxes until October 15. Also, Payer declined to VERIFY facts on IRS’s Form 4852 (Line 8b which ‘CORRECTS’ the 1099-R, BOX 2a = Taxable Amount). Please advise and share your own experiences with IRS/Payer’s “Not Our Problem,” your PROBLEM?

Thank you.



Submitted by Alan - IRA critic on Thu, 2017-06-01 22:06

If you recharacterized a 2015 Roth conversion in 2016, that should generate a 2016 1099R coded R and Box 2a should be 0 because a recharacterization is a non taxable transfer. The R code means the contribution you recharacterized was a 2015 contribution (conversion).  If the 1099R is incorrect, it should be corrected. But what about this 1099R is incorrect and does not reflect the transaction you executed?

Submitted by David Mertz on Mon, 2017-06-05 15:06

If you perform a Roth conversion and then a recharacterization of that conversion, you should receive two Forms 1099-R, one for the original conversion and the second one for the recharacterization.  The one for the original conversion does not get changed as a result of the recharacterization.  Both must be reported.

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