barosser Posted August 9, 2007 Report Share Posted August 9, 2007 I am not sure that this isn't somewhere else, I uploaded and then could not find. Question TP received a 1099 R (IRA_SEP) Distribution Code P in 2006. this was put in the program the figure flows to line 15a but not to 15b (taxable). I feel that I am missing somthing..do I have to amend 2005 to show the excess contribution for ty 2005? PS thanks for all the post I learn alot form this board Quote Link to comment Share on other sites More sharing options...
Pacun Posted August 9, 2007 Report Share Posted August 9, 2007 You have to enter taxable portion on 1099-R Quote Link to comment Share on other sites More sharing options...
barosser Posted August 9, 2007 Author Report Share Posted August 9, 2007 You have to enter taxable portion on 1099-R On the ATX 10-99R input screen I have the Taxabe amount in box 2a, with code P, If I take the code P out the figure flows to box 16b as taxable, . Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted August 9, 2007 Report Share Posted August 9, 2007 On the ATX 10-99R input screen I have the Taxabe amount in box 2a, with code P, If I take the code P out the figure flows to box 16b as taxable, . I had my first one of those this year. Fortunately we were aware that the contribution was in excess (the plan failed the annual test) and so the company handling the 401K plan informed my client that he would be getting a check and that a 1099 would be issued, however because the contribution was for 2006 and the refund was issued in 2007 they informed us via a nice letter exactly how it was to be handled. Because I had already filed their 2006 return we did have to ammend it and include the refunded contributions and pay normal tax on the amount. The 1099 when we get it will have 2007 on it but the code P indicates that it was a contribution for a prior year. Therefore the answer to your question, as I have seen it, is that you need to ammend the year in question, and the progam is handling it exactly correctly. It is a distribution in 2006, however code P tells IRS that it was for a prior year. I hope this helps, as I too had never had one of these, but was able to follow the info on the letter as well as did some additional research. Like I said the one I did was caught early, as a result we were able to ammend and pay the additional tax by April 15th therefore no penalty, no interest. Quote Link to comment Share on other sites More sharing options...
Pacun Posted August 9, 2007 Report Share Posted August 9, 2007 Code P could mean a lot of things, you need to find out the taxable portion of it by asking the client or the issuer of the 1099-R. Quote Link to comment Share on other sites More sharing options...
barosser Posted August 10, 2007 Author Report Share Posted August 10, 2007 Thank You very much This is a refund of excess contrubtions from 2005, so I will amend that year to show the additional income. have a great Day :) Quote Link to comment Share on other sites More sharing options...
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