1099-R and 5329 Form questions Hello friends,
I have a question in regards to 1099-R forms. Say I have a 401k, I roll it to a IRA, then take out a loan from it and then pay it back within it the appropriate time frame.
Come tax season I get a 1099-R for the rollover, which shows no taxable income, that is fine. But then I get another 1099-R for the loan showing the loan amount as taxable amount under box 2a, box 2b showing a check under taxable distribution amt not determined, and box 7 showing the code 1.
As far as I am concern, I should not have received a 1099-R form for the loan since I paid it back on time, so I called them and they told me that the 5498 form that comes out showing the offsetting distribution comes out in May 2013 and that they recommend me filling the 1099-R with a 5329 form explaining that I properly returned the loan in the appropriate timeframe, along with the statement reflecting it (they sent me the statement that shows that I have paid the loan back)
My questions would be how to fill out the form 5329 so that they do not charge any taxes on this loan?
Thanks |