I was referring to box 1 and box 2 of Form 5498 that you'll receive in three months, not the 1099-R you've already received.
I think the best thing for you to do is wait until the accountant fixes the return and see what happens to your refund.
Yes, sounds like the $19K IRA distribution should still show on 4b.
Thanks.
So yes. I called the accountant and explained and he was just leaving his office and said he would call me the next day after he checked into it. Never heard from him.
So I left a voice mail message later that evening and I sent an email so I would have it all in writing and then waited two days and called him again. He answered the phone said he was correcting it as we spoke on the phone. Said they would run a diagnostic and then I would get an encrypted email with the correction from his manager that afternoon at 1:00-1:15. Never got it. (At the time I wasn't sure if he was correcting the "yet to be submitted" return- or- if he already e -filed it- if he was doing an amended return.)
So the next day I called him again. He picked up the phone and apologized that I had to call him before he got to calling me first. (really?). Said his office has been crazy. Claimed he was holding it in his hand as we spoke. Said they already e-filed my return on Friday and would do an amended return at no cost to me (I should hope so!) and I would receive it via encrypted email after they run a diagnostic.
Later on this afternoon when I called about my ACA plan- see my other post down this thread- another accountant there who was doing my amended return said if I ever do this next time- roll over a RMD distribution- to ask the financial company to put in the correct code to show it was a rollover. I don't know what he is talking about. The only code I see on the 1099R is code 4 which = Death. I don't know that they could put on another code on that form since taxes were paid out of it. It wasn't like a regular roll over where you don't pay taxes on it.
Anyway-my first phone call today was at 10:30 this morning and still haven't received the amended return. I will give it until the end of the week and call again.
I am curious now as to what this does to my tax return. I assume I should at least be getting back the taxes I had to pay on the distribution when I took it back in March since when I rolled over the money in August I had to add the taxes back in.
Also- putting us at a negative income (0) I wonder what that does?
I'm sorry I even sent it back. In the past I used to take the distribution in June around my birthday (considering it a birthday from my deceased mom). This helped also to remind me to make sure I sold of some investments and had the money necessary for the RMD in the Money Market account.
Last year my financial advisor told me to take it early as it helped with planning. All his clients take it early in the year he said. Ok- so I changed it to March.If I had waited until June, I would have known about the Cares Act then and not taken the RMD in the first place.
I didn't see why this was even necessary. I mean- according to him, I ended up having to take an RMD from my Traditional IRA this year so as not to fall under the ACA poverty limit that would push me on Medicaid. And honestly, I am not sure I even had to do that because I will be going onto Medicare in June anyway and already have my ACA plan in place until then. So what would it even matter? They cannot put me retroactively on Medicaid. (I just applied for Medicare today to start June 1st).
Ironically, so now because of this amended return due to the rollover of the Inherited IRA, our income will be much lower for 2020 than the advisor projected anyhow. And before I sent it back I did ask him if I should do so! And I believe it does put me at the Medicaid level. But like I said, I don't see where it will matter anyhow, so all the planning was for not. Maybe I'm missing something.
I could have just kept that Inherited IRA money and took out a much smaller amount from my Traditional IRA. The advisor knew I would have to take money out of the IRA anyway. But honestly, to me it seems I shouldn't have taken any money out of either one of them.
Come to think of it maybe I could have done a Roth conversion because I am going on Medicare in a few months anyway, so why worry about the ACA plan?
Maybe this year 2021 I will do one, but I don't know. I like to keep things simple. I also have to worry about Medicare premium rates in regards to income.
*One more concern I have is right now the way the incorrect tax return that was already e filed stands, the adjusted gross income shows $31,000, which puts me above what I should have had for the subsidies I received. Was this factored into my taxes already? I am getting a refund of several thousand dollars.
Or- is this something I later would get a letter from the IRS asking for money back? Not sure how it works.
After the amended return our adjusted gross income will be $20,000 which puts me at Medicaid level.
This is why I am obsessing about this whole thing.
SMH......
PS I want to thank the OP for starting this thread. I almost did not read it and if I didn't I would have never realized this. So much for relying on a CPA. I learned a lesson. Check your returns even if having a so called professional preparing them.
