1099-R for Excess 402(g) Contributions

[Guest Lawrence_Groves]

Participant made excess contribution over the 2003 $12,000 limit. Contribution and earnings refunded by March 15. Form 1099-R for 2003 prepared for excess contribution. Form 1099-R will be prepared for excess earnings for 2004. Does Form 1096 have to be filed by March 1, 2004 for the Form 1099-R for the 2003 Form 1099-R?

[TBob]

The 1099R for the excess amount that is distributed between January 1 and March 15th is not a 2003 1099R. It should be a 2004 1099R with a distribution code of P denoting the distribution as taxable in the prior year (2003).

The 1099R is issued for the year in which the distribution actually occurrs.

Therefore, the 1096 gets taken care of in 2005.

[Earl]

I thought the guy gets two 2004 1099s. One code P for taxable in prior year and one code 8 for taxable in current year.

[TBob]

Earl is correct. The participant get's two 2004 1099Rs. 1 with code P for the excess and the second with Code 8 for the earnings.

[Earl]

wheew