1099-R question

Feb 22, 2010 4 Replies
K

Hi,



I was wondering if anyone could help me with the following situation:



In April 2009, while doing my taxes for 2008, I realized I had contributed more to my ROTH IRA than what I was allowed to. I then did a re-characterization for the excess amount to a Traditional IRA and completed everything within the first week of April. My 2008 tax return reflected this re-characterization.



Doing my 2009 taxes right now, I see I have a 1099-R form sent to me by the institution for the re-characterization done in April.



Am I supposed to reflect this amount again in my 2009 tax forms?



Any help would be appreciated.



Thanks!


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S

I would show the amount on the 1099-R on line 15a (IRA distributions) and as zero income on line 15b (taxable amount of IRA). If you're using TurboTax or H&R Block Home Edition, maybe there's a question that's asked that applies to your situation.

The reason I wouldn't ignore it is that years ago, under the IRS rules then in effect (I was allowed to take my own after-tax contributions out first), I made a tax-free withdrawal from the Bell System Savings Plan. Since there was no income, and no equivalent of lines 15a/b on Form 1040, I just ignored it. Well, about a year later, at the ripe old age of 32, I receive a tax bill (including interest and penalty) on the amount of retirement income I hadn't declared.

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R

Just wondering, does the 1099-R form that you received recently (probably received in 2010) say 2008 or 2009 on it?

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K

The form is for 2009 with a distribution code of R.

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H

Nothing to do. The distribution code (R) says it all.

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