Overpayment / EPCRS

[austin3515]

Small overpayment in a 401k plan. I know I send a letter asking them to repay the overpayment, and tell them that the amount was not eligible for rollover.

Do I need to issue a 1099 showing taxable income for the amount not eligible for rollover if I know they rolled it over?

[K2retire]

Likely there will be 2 1099s -- one for the amount legitimately rolled over and another for the portion that wasn't eligible for rollover and is taxable.

[mbozek]

Small overpayment in a 401k plan. I know I send a letter asking them to repay the overpayment, and tell them that the amount was not eligible for rollover.

Do I need to issue a 1099 showing taxable income for the amount not eligible for rollover if I know they rolled it over?

why not ask the participant to roll the excess back to plan so as to eliminate need to report excess?

[SheilaD]

Small overpayment in a 401k plan. I know I send a letter asking them to repay the overpayment, and tell them that the amount was not eligible for rollover.

Do I need to issue a 1099 showing taxable income for the amount not eligible for rollover if I know they rolled it over?

We have been successful in contacting the rollover account holder (i.e. bank or investment company) and explaining that it is an ineligible rollover made by error. They have always returned the money.