Do I need a revised 1099-R?

[Deleted]

I left my employer in May of last year and immediately started the paperwork to get my retirement accounts out of their plan, which is sponsored by Principal Financial, and move them to Fidelity. This included $27,000 in a 401(k) which I rolled over into an IRA. (I believe the check was written to "Fidelity, FBA Athena53" but didn't keep a copy; it's just something I check for because I've done tax-free rollovers before and know it should never be made directly to me.)  The Fidelity statement correctly shows that the entire amount was deposited into a Rollover IRA.

I got the 1099-R from Fidelity over the weekend and it shows a Gross Distribution in Box 1 of $27,000.  Box 2a, "Taxable Amount" also says $27,000.   Box 7, the Distribution Code, shows "G" which is Direct Rollover".  No tax was withheld.    

I called Principal and they claim that Box 2a is just the amount that MIGHT be taxable and I don't need a new 1099-R.  I'm paranoid because last time I did a rollover, the sponsor for that plan just left Box 2a blank and I'm still cleaning up the mess caused when the IRS decided that meant it was ALL taxable.  (They agreed that I didn't owe taxes on it but now I'm cleaning up the issue with the 2 states where we pay taxes based of Federal AGI.) 

So- do I need a new 1099-R or is there a place on the 1040 where I subtract the $27K I rolled over?  And will this $27K go into our AGI before being subtracted somewhere later?  I'm concerned about that because it will put us over a threshold which will increase DH's 2014 Medicare B premiums retroactively, and of course will affect our deductions that are subject to a floor of X% of AGI.

Thanks!

[mwcpa]

Code "g" makes this not taxable.... There is no need for a corrected 1099.

there are 2 boxes for the pension withdrawal.... Box 16a gets the dollar of the distribution rolled over and box 16b, in this case, gets a zero since a rollover is not taxable.

[Deleted]

Thanks! I appreciate your answer, especially since you're getting into the Crazy season in your business.

I did what I should have done in the first place: entered the form into TurboTax to see what happened to the liability. Zero change.

I'll chalk it up to panic; last year within 2 months of retiring I got ugly e-mails from the IRS and from our state of residence.  The IRS was after us because the feed from our brokerage for 2012 investment income was faulty and we owed another $4K in taxes.  Our state sent us a big bill for 2013; part was that I'd tried to save $$ by not downloading a second state version (I work across the state line) and messed up in Excel and the other was that I hadn't included a copy of the return for the "work" state so they set my credit for taxes paid to that state to zero.  Nice.  I've almost got everything cleaned up; today I'm going to get our revised 2012 taxes for our state of residence out, having agreed on the Federal version and having not heard from the "work" state after I sent THEM 2012 revised 2 months ago.  I'm glad I don't have another mess on my hands!  

[The Captain]

Jan 26, 2015 19:43:27 GMT -5 mwcpa said:

Code "g" makes this not taxable.... There is no need for a corrected 1099.

there are 2 boxes for the pension withdrawal.... Box 16a gets the dollar of the distribution rolled over and box 16b, in this case, gets a zero since a rollover is not taxable.

MWCPA - thanks as always for chiming in!  If you're even in Chicago let me know - I'd like to buy you a beverage of your choice!