60 day IRA rollover coding

When a 60 day IRA to IRA rollover is done with the same custodian, how should the 1099R be coded? I work with a company that is displaying the full amount of the distribution in box 1 and box 2 (the taxable amount box).

My client’s CPA is saying that a corrected 1099 should be issued, while the IRA custodian says that the 5498 will show the amount rolled over, and they will not issue a corrected 1099. Who is right?



The IRA custodian is correct and so is the 1099R. If a 1099R is issued for a regular distribution, 2a always shows the full amount and Form 5498 will show a rollover contribution made. The distribution must be reported on the return on line 15a with “rollover” entered next to line 15b and there will be no taxable income included on the return on line 15b.



Thank you very much.  That is exactly what I needed to know!



Add new comment

Log in or register to post comments