2023 1099R was issued on a Distribution that was never made

[Teresa Delarosa]

Terminated participants were issued a 1099R this past January 2023 for a distribution that was never processed either by ER or IA. The funds are still in the Plan and will get distributed this year. How do you correct the 1099R issued. It was a ROLLOVER Distribution not a cashout. Do you simply complete a CORRECTED 1099R for 2023? Do you enter 0.00 for the taxable amount and not enter a code?  

[Appleby]

On 5/22/2024 at 8:33 PM, Teresa Delarosa said:

Terminated participants were issued a 1099R this past January 2023 for a distribution that was never processed either by ER or IA. The funds are still in the Plan and will get distributed this year. How do you correct the 1099R issued. It was a ROLLOVER Distribution not a cashout. Do you simply complete a CORRECTED 1099R for 2023? Do you enter 0.00 for the taxable amount and not enter a code?  

If the funds did not leave the plan, a corrected 1099-R should be issued for zero$, to overlay the incorrect 1099-R.
What do you mean by?

Quote

"It was a ROLLOVER Distribution not a cashout."

Are you saying it was rolled over to an IRA or other employer plan?  Because, if it was rolled over, a 1099-R should be issued.