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Reply With QuoteThanks for the heads up!
TSP 1099-Rs Split based on change in contractors
I got 2 separate TSP 1099-Rs today. In box 7, the distribution code in 2 on the first one and 1 on the second.
Code-Description
1-Early distribution, no known exception (in most cases, under age 59 ½)
2-Early distribution, exception applies (under age 59 ½)
Just a little frustration on my part, the Code 1 results in Tax Penalty unless you meet an exception-- Substantially Equal Periodic Payment (SEPP). It requires a couple of extra steps in TurboTax to eliminate the penalty by putting dollar amount in the exception screen but I'm just annoyed at the new contractor for changing the code.
I don't think this impacts too many people but you may want to double check if you are under 59.5 and getting distributions from TSP. I'm not sure how they code those who retire after turning 55 or 50 for LEOs
Happy Trails
Re: TSP 1099-Rs Split based on change in contractors
Thanks for the heads up!
Re: TSP 1099-Rs Split based on change in contractors
Same here. Two 1099-Rs. One with the correct code 2 and another with the incorrect code 1. I think that this impacts a lot of people and should be corrected by the TSP. I've been trying to contact the TSP via e-mail/chat, but have had no success. (Don't want to spend hours on the phone)
Re: TSP 1099-Rs Split based on change in contractors
Me too!!! I am not a happy camper!
Re: TSP 1099-Rs Split based on change in contractors
I called the TSP today, 2:30pm EST, and had to wait ZERO minutes! amazing!! Anyway....i explained the error on my 1099-R to the rep, and he told me that he was creating something....and that TSP will mail me out a corrected 1099-R, but it (corrected form) won't appear on the website. Time will tell if this was too simple to fix or not. update, when the corrected form is in hand.
Re: TSP 1099-Rs Split based on change in contractors
follow up.... Today, 2/10, i received in the mail a form letter from TSP, acknowledging that they were aware of errors on 1099-R's that had been sent out to participants. Corrected copies were supposed to be mailed out last week.
Re: TSP 1099-Rs Split based on change in contractors
Received two corrected 1099-R's today, 2/13. they put the total yearly distribution on one with the correct dist. code, and zeroed out the $ amount on the one with the wrong code. oy vey...I guess it will work.
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