R
Rick
My wife and I received two 1099 forms from our bank for TY 2013 which we don't
understand. One is for me and the other is for her.
My 1099 is the simpler case. In 2013 I had an IRA CD of approximately
$41,000 which matured and I elected to transfer the full amount to an IRA
Money Market account I had at the same bank (Wells Fargo). So on the day
the CD matured, I went to the bank in person, filled out the requisite
paperwork, and the money was properly transferred to my MM account. As far
as I know, this was handled as a trustee to trustee transfer (since in this
case the sending and receiving trustee was the same), and I never saw or
took possession of the check. So why did I receive a 1099? Box 1 and 2a
both contain the amount I transferred, box 2b is checked and the
distribution code in box 7 is "7". Was this just a mistake by the bank and
do I need to have it corrected (that is, un-issued)? Or should I just
include this on my 1040 and make sure I show the taxable amount as zero?
My wife's case is a little more complicated. She also had an IRA CD mature
(amount $33,928) at Wells, but in this case we took a distribution on the
funds and deposited the money in a regular checking account at Wells.
Roughly 45 days later (well within the 60-day limit), we rolled $22,000 of
this money over to her IRA Money Market account, also at Wells. So the net
amount of her distribution was $11,928. Later in the year, we took the full
amount that was in her IRA Money Market account (which was slightly more
than $22,000 due to a few dollars that had already been in the account) and
did a trustee to trustee transfer to a different brokerage company (Merrill
Lynch). The way we did this was to have the bank issue a check to her for
the $22,000+ and issue it to Merrill Lynch FBO my wife's name. The next day
we delivered this to Merrill Lynch and they opened a brokerage IRA account
for her.
In my wife's case, I expected to see a 1099 in my wife's name from Wells for
$11,928 which was the net amount we ended up receiving from the IRA
accounts. Instead, she got a 1099 from the bank for $55,997.41, which
apparently is the sum of the original $33,926 plus the $22,000 we ended up
putting back into the first IRA. In other words, instead of subtracting
$22,000 from $33,926, they seem to have added. As was the case on my 1099,
the full amount was included in box 1 and 2a, box 2b was checked and box 7
had a "7". In this case, the total distribution box next to the amount in
2a was also checked, since my wife no longer has any IRA money at Wells.
My wife and I are both age 63, and all of the above transactions took place
in tax year 2013.
understand. One is for me and the other is for her.
My 1099 is the simpler case. In 2013 I had an IRA CD of approximately
$41,000 which matured and I elected to transfer the full amount to an IRA
Money Market account I had at the same bank (Wells Fargo). So on the day
the CD matured, I went to the bank in person, filled out the requisite
paperwork, and the money was properly transferred to my MM account. As far
as I know, this was handled as a trustee to trustee transfer (since in this
case the sending and receiving trustee was the same), and I never saw or
took possession of the check. So why did I receive a 1099? Box 1 and 2a
both contain the amount I transferred, box 2b is checked and the
distribution code in box 7 is "7". Was this just a mistake by the bank and
do I need to have it corrected (that is, un-issued)? Or should I just
include this on my 1040 and make sure I show the taxable amount as zero?
My wife's case is a little more complicated. She also had an IRA CD mature
(amount $33,928) at Wells, but in this case we took a distribution on the
funds and deposited the money in a regular checking account at Wells.
Roughly 45 days later (well within the 60-day limit), we rolled $22,000 of
this money over to her IRA Money Market account, also at Wells. So the net
amount of her distribution was $11,928. Later in the year, we took the full
amount that was in her IRA Money Market account (which was slightly more
than $22,000 due to a few dollars that had already been in the account) and
did a trustee to trustee transfer to a different brokerage company (Merrill
Lynch). The way we did this was to have the bank issue a check to her for
the $22,000+ and issue it to Merrill Lynch FBO my wife's name. The next day
we delivered this to Merrill Lynch and they opened a brokerage IRA account
for her.
In my wife's case, I expected to see a 1099 in my wife's name from Wells for
$11,928 which was the net amount we ended up receiving from the IRA
accounts. Instead, she got a 1099 from the bank for $55,997.41, which
apparently is the sum of the original $33,926 plus the $22,000 we ended up
putting back into the first IRA. In other words, instead of subtracting
$22,000 from $33,926, they seem to have added. As was the case on my 1099,
the full amount was included in box 1 and 2a, box 2b was checked and box 7
had a "7". In this case, the total distribution box next to the amount in
2a was also checked, since my wife no longer has any IRA money at Wells.
My wife and I are both age 63, and all of the above transactions took place
in tax year 2013.