A new client of mine rolled over a 401K to an IRA in TY2011.
The trustee for the 401K was a small 1-person shop that managed the plan for a few US employees of a Canadian company. Both the 401K and the rollover IRA were held at Fidelity Investments.
After the rollover the client asked the 401K trustee if he would receive 1099-R and the trustee said no because it was a direct rollover and both accounts were at Fidelity. Given he didn't receive the 1099-R, the client didn't report the rollover his Y2011 return. I believe this trustee is incorrect and a 1099-R should have been generated. I asked the client to ask the trustee to confirm no 1099-R was submitted to the IRS (just-in-case), and am waiting for a response but most likely the answer is NO.
Assuming the trustee should have generated a 1099-R what can be done to correct this problem?
Should the client file an amended return with the rollover included even if there's no corresponding 1099-R?
- posted 6 years ago