Which year ?

[Chip Wood]

Had a dispersal from my 401K dated in Dec, but due to being lost in the
USPS it got re-issued in Jan. Which Tax year do I claim it on?

Chip

 

[Dick Adams]

Had a dispersal from my 401K dated in Dec, but due to being
lost in the USPS it got re-issued in Jan. Which Tax year do
I claim it on?

That is so clear that I may know the correct answer.

An Accountant would ask "In which year do you want to claim it?" LoL
But I've never been an Accountant - just a School Marm who taught
Systems, Auditing, and occassional bookkeeping courses.

The answer is "In the year in which you had constructive receipt - 2012."

Dick

 

[removeps-groups]

That is so clear that I may know the correct answer.

An Accountant would ask "In which year do you want to claim it?" LoL
But I've never been an Accountant - just a School Marm who taught
Systems, Auditing, and occassional bookkeeping courses.

The answer is "In the year in which you had constructive receipt - 2012."

But then will he have to to explain the 2011 1099-R to the IRS which
will show the distribution in that year?

Besides you may sell stock on Dec/31/2011 but the money won't post to
your account for another 5 days. Yet this is 2011 transaction.

 

[Pico Rico]

That is so clear that I may know the correct answer.

An Accountant would ask "In which year do you want to claim it?" LoL
But I've never been an Accountant - just a School Marm who taught
Systems, Auditing, and occassional bookkeeping courses.

The answer is "In the year in which you had constructive receipt - 2012."

Dick

so because of a post office foul up he might be penalized for not meeting
his required annual distribution? I don't think so.

 

[Dick Adams]

so because of a post office foul up he might be penalized for
not meeting his required annual distribution? I don't think so.

Chip did not say, suggest, or imply that he would fall short of his
required annual distribution. Legally and ethically minimizing
taxable income in the current period is an honorable and generally
preferred preferred strategy. You have identified a circumstance
where that strategy falls short.

Dick

 

[Dick Adams]

But then will he have to to explain the 2011 1099-R to the IRS which
will show the distribution in that year?

I do it every year or two.

Besides you may sell stock on Dec/31/2011 but the money won't post
to your account for another 5 days. Yet this is 2011 transaction.

In a 401-K?

Dick

 

[JoeTaxpayer]

Had a dispersal from my 401K dated in Dec, but due to being lost in the
USPS it got re-issued in Jan. Which Tax year do I claim it on?

Chip, what does the 1099 show? If it shows 2011, and you had an RMD, all
is well. If 2012, you need to request correction.
If RMDs are not involved, I'd go with the 1099, not worth the effort
(unless for some reason, it really is.)

In January '10, I got a call from a charity, asking if I was still
planning to donate. Apparently, the donation I made in Dec '09 didn't go
through, when you have too many large credit transactions, some card
issuers throw up a flag. I offered the card again, and asked how the
letter would reflect the date. She asked if I wanted it to show
12/15/09, my original failed attempt to transact. And that's how the
letter showed it. Obviously, charities can be a bit looser on these
things, but I'd imagine you can push for a 2011 1099 if that's important
to you.

 

[Chip Wood]

Thanks all. Still waiting for the 1099-R, but given the advice here and
wanting to avoid hassles I'll probably claim the RMD in 2011. Hopefully
the 1099 will reflect that. If not, I'll call the 401k people and have
them send a correction to 2011. It was my 1st RMD ever and jumping thru
IRS hoops can be a pain. I don't foresee 2012 being a lot different in
terms of tax situations.

Chip

 

[D. Stussy]

Had a dispersal from my 401K dated in Dec, but due to being lost in the
USPS it got re-issued in Jan. Which Tax year do I claim it on?

2011. The check is irrelevant. It's when the funds left the tax-deferred
account, and that happened when the check was cut the first time.

 

[Alan]

2011. The check is irrelevant. It's when the funds left the tax-deferred
account, and that happened when the check was cut the first time.

I agree.