Revised 1099-R codes for corrective distributions

[Guest Jane Freeman]

I have seen information regarding a change in the code for corrective distributions. According to the information I have read, uder the corrected instructions, the plan would use code 2 for a corrective distribution. Does this seem correct? How would you indicate in which year the corrective distribution was taxable? I would appreciate any comments from individuals that have seen/heard any information regarding the corrected instructions.

Thank you.

[Tom Poje]

see

http://www.irs.gov/formspubs/article/0,,id=109875,00.html

you have to scroll about 2/3 of the way down to find the item that is applicable to 1099R

looks like you would use a code 8,D or P to indicate the year

[Guest dyoder]

Does this mean that instead of just a code 8 for excess contributions distributed in 2004 you show 8 and 2? If so, exactly how is this shown on the 1099-R - 82? 8-2? 8 2? Thanks.

[Beemer]

I have in the past printed dual codes as "2P" for example without any problems. However, this year I am still unsure how to handle corrective distributions. Even the corrected irs instructions do not seem to directly address the issue. I think coding a corrective distribution as "2P" would cause the least amount of problems, but I am having trouble finding support for this.