Guest rflowers Posted November 29, 2001 Posted November 29, 2001 We have encountered the very popular ineligible deferral problem discussed at length on this site. It appears that most persons uniformly suggest reporting a corrective distribution of ineligible deferrals using Form 1099R. However, what code would you use in box 7 on Form 1099R to report such distribution? It isn't really a code "8" is it? It isn't a return of excess deferral or contribution. And if you use code "8," what if you really do fail the ADP/ACP test and have to make refunds - then you'd have code "8" distributions that really are code "8" distributions and some code "8" distributions that really are not code "8" distributions. Problem is that there is no other code to reflect a refund of ineligible deferrals on Form 1099R. Isn't this a problem?
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