1099R Code P

[S T]

T/P received 1099R for year 2007 with code P in box 7.

2006 tax returns have not been completed yet, so I will include the distribution amount on the 2006 tax return, correct?

Something I have not seen before. This 1099R has Federal and Calif withholding. So do we indicate the withholding on the 2006 return or hold for the 2007 return?

Thanks

Sandy

[Bird Legs]

1099-r

If there is a phone # on the face of the 1099-R, I would call it and ask them what happened.
Maybe the wrong year form was used.
Maybe the distribution was actually made in 2007 and an early 1099 was issued.

[S T]

1099r 2006

The 1099R is for the excess contribution for 2006 (highly compensated) so code P is correct, but the Employer offered withholding on the distribution.

I saw on another message board some discussion on this issue with Fed and State withholding in 2007, so thought I would get some more viewpoints.

Code P we would include in prior year which would be 2006, but withholding it seemed could not be accounted for until 2007 because IRS and State would not have that posted until 2007.

Anyone else know?

Sandy

[solomon]

Other Day

Had an excess 401k contribution the other day. A 1099R with code P will be issued in 2007 because the excess was withdrawn before March 15th. The excess contribution must be reported as wages in 2006.

IRS 401k Dept. advised the proper way to do this is simply add the excess to Box 1 of the W-2 - I know, it will not agree with IRS copy. That is okay because in 2007 they will match it up when IRS sees 1099R with code P.

[S T]

Thanks

The code P distribution reporting on 2006 I am fine with

when and How do I report the withholding that was done on this distribution?? 2006 or 2007

Distribution for 2006 was made prior to 3/15/07 so the code P, but was made in 2007 and withholding is 2007?

Sandy

[geekgirldany]

Sandy there was a thread about this on TaxAlmanac. That might be what other forum you were speaking of.

http://www.taxalmanac.org/index.php/Discussion:1099-R_Code_P_Withholding_Conundrum

I think you would have to wait until 2007 to report the withholding. I've never had one of these with withholding on it.

[S T]

Yes

Yes that is where I saw the other thread,

I haven't done one of these with code P either with withholding before.

Looks like report income from distribution in 2006 and make a note to just take credit for the withholding in 2007.

How crazy is this?

Sandy