1099-R Processing Tips

[Guest R Plank]

I have been given the task of completing 1099-R forms for distributions that have occurred with plans that my company handles as TPA. Does anyone have any tips or tricks for compiling information or easy ways to follow up without sounding pushy to clients?

All responses are welcome and appreciated.

[BG5150]

Where are the assets for the plan held? Are they with a big company like ING or Prudential? The custodian have have a handy report for you.

If they are in individual brokerage accounts, you'll have to do some detective work.

[Bird]

We try to control that process by preparing the forms and not having anything done until we give instructions. Even with that, we still find some participants who did or didn't get paid as expected. If you just ask clients who got paid, I doubt your accuracy will be much greater than 50%. I've learned to assume that everyone is stupid and/or lazy (experience has unfortunately proven that assumption correct all too often); the ones who aren't stupid and/or lazy recognize the need for pushiness and don't mind, the others need it.

[Guest R Plank]

@BG, They are mostly held with Brokerage accounts, the other plans that we handle have their 1099-R's done by those large investment companies. I guess I get to try out that Sherlock Holmes hat I bought for Halloween and never got to wear...

@Bird, I too have realized that most participants and clients are either out of their league or just don't care. Thanks for the advice.

[BG5150]

Who wrote the checks? For the distributions and the taxes.

To see the gross amount distributed, I guess you could use the brokerage statements. For the withholding, you will have to rely on whomever did the tax withholding/payment to IRS to give you that information.

(Hopefully, you have, or can get, copies of the distribution paperwork to see if the money was supposed to be rolled over or directly paid, so you can match up the withholding amounts and to determine the 1099 codes.)