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1099R Distribution Code T for Traditional IRA


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#1 Crank

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Posted 17 March 2010 - 06:20 PM

I have a 1099R with an incorrect distribution code. A code "T - Roth IRA distribution, exception applies" was used. The client claims that it wasn't a Roth IRA but that is was a traditional IRA. Documentation supports this also. Client is 62 years old. Does the bank need to issue a corrected 1099R?

#2 LindaB

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Posted 18 March 2010 - 09:58 AM

You should try to get a corrected 1099R if this is not really a Roth IRA. If you try to enter it the way it is, you will need to use form 8606, part 3 for Roth distributions, and the return won't be right.

#3 Crank

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Posted 18 March 2010 - 06:13 PM

Thanks Linda

#4 Bart

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Posted 18 March 2010 - 08:11 PM

You should try to get a corrected 1099R if this is not really a Roth IRA. If you try to enter it the way it is, you will need to use form 8606, part 3 for Roth distributions, and the return won't be right.


It is hard to make a return be right when the source documents are not right. I have always heard that two wrongs don't make a right. Perhaps, in this case, if you make the return right by forcing it to be right by doing something wrong, you have made a right out of two wrongs.




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