Chris.Y Posted March 23, 2020 Posted March 23, 2020 We have an outside asset company process distributions and prepare 1099-Rs. A lump sum distribution was processed in 2019. Federal withholding submitted. 1099-R generated. February 2020 - Per the participant, a stop payment was placed on the check and the funds were returned to the original plan. Withholding was not returned. Should we be correcting the 1099-R? What should be done with the withholding. It's a large asset provider, so I'm not sure that they will correct to return it. Thank you!
Bird Posted March 23, 2020 Posted March 23, 2020 I think we need more info. Why was the stop payment done? If the check was just lost, then it should be re-issued; I wouldn't change anything else. Ed Snyder
Bill Presson Posted March 23, 2020 Posted March 23, 2020 I would think it's an issue for the outside asset company that processes everything for you. William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
Larry Starr Posted March 23, 2020 Posted March 23, 2020 4 hours ago, Bird said: I think we need more info. Why was the stop payment done? If the check was just lost, then it should be re-issued; I wouldn't change anything else. I agree; we don't know enough info to answer. Why was the payment stopped and when? Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
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