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Posted

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!  

Posted

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

Posted
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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