Yardley CPA Posted March 29, 2014 Report Share Posted March 29, 2014 Client made a $250 contribution to an IRA at his bank. Client has two bank accounts with the bank. Bank took the $250 contribution out of both bank accounts and deposited $500 into the IRA. Once the mistake was found, bank withdrew $250 and returned it to his normal checking account. As a result of this "withdraw" from the IRA, bank issued client a 1099-R showing a distribution from the IRA. Client has not received a Corrected 1099-R. Bank told him to include a copy of his bank statement showing both $250 contributions to the IRA and the withdraw of $250 with an explanation of the mistake. I've never heard of this and felt a Corrected 1099-R is what is needed but wanted to throw it out there and see if anyone else has delt with a similar situation? Thanks! Quote Link to comment Share on other sites More sharing options...
JJStephens Posted March 29, 2014 Report Share Posted March 29, 2014 I ran into a similar thing a year or two ago. The bank wanted to take the easy way out. We finally forced their hand on issuing a corrected 1099-R (alas, it took them two months to do it). That's what I'd suggest. 1 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 29, 2014 Report Share Posted March 29, 2014 I agree with JJStephens. The bank, as usual, is being lazy and taking the cheap easy (wrong) approach. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 29, 2014 Report Share Posted March 29, 2014 Yep you should insist that they correct THEIR ERROR in the proper manner, with a CORRECTED 1099R. 2 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted March 30, 2014 Report Share Posted March 30, 2014 MOM was dying so took out IRA but was joint in daughter's name so she could sign, bank issued 1099 in daughter's name - I said take it back and get it corrected - you were not old enough to take this out! She did and they did - hard to believe they listened, annoying they made the mistake in the first place. We are never allowed that latitude. D Quote Link to comment Share on other sites More sharing options...
grandmabee Posted March 30, 2014 Report Share Posted March 30, 2014 How can an IRA be in a joint name? Quote Link to comment Share on other sites More sharing options...
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