My husband retired in 2013 as a HCE and rolled his 401k into IRA. He’s now 701/2, and he took RMD In 2017. He received a letter in Dec. 2016 notifying him that the plan failed ADP test for 2013, and that they needed to give him a distribution of the excess, but since he retired and rolled his 401k into IRA; that he would need to take distribution from his IRA. A 2013 Corrected 1099R was issued to him by the plan administrator in January 2017.
We did not Amend 2013(missed deadline). 2016 we withdrew some from IRA and paid tax on it as Normal Distribution. Jan. 2017 he withdrew correction amount from IRA plus he took RMD for the year. 2017 1099R from Vanguard shows both as Normal distributions.
Should the correction amount be coded as P on 2017 1099R? Should this portion of our IRA distribution be broken out as Other Income rather than included with Normal IRA distribution?
Thanks for any advice. The correction is an insignificant amount, but I don’t want to handle this incorrectly.
