Incorrect 1099-R ... I hate the new TSP

[sean101]

So..... I received TWO 1099-R's in the mail today from the TSP. One looks to have 3/4 of the distributions on it, and the other the remaining 1/4. I take quarterly distributions. The smaller amount has the correct distribution code on it, 2, as I am qualified LEO retired, and meet exemption criteria. The larger 1099 has code 1, early distribution /no exemption. I am pretty sure on the NEW and IMPROVED website, they have my retirement classification correctly listed, so i don't know how they could screw this up.

Am i going to have to get on the phone and try and get someone to issue me a corrected 1099?!? What do you think my odds are of success in accomplishing this?? If I can't get them to issue me a corrected, should i just list the wrong amount as exempt, with a code 2?

 

[sean101]

I went on to the website, and the distribution history for my account only had 3 of the 4 distributions i received in 2022( all after 06/01) when the NEW TSP started up, nothing before that. So i guess they can't be bothered to figure out what members' account status was prior to taking over the TSP.

How much $$ do these people make for managing our money?

 

[jfo363]

Same thing here. Two 1099-Rs came in the mail today. TSP distributions received under the old TSP have the correct distribution code of 2. The distributions received under the new TSP have the incorrect distribution code of 1. This is a significant error. If not corrected, I will need to pay a 10% penalty for early withdrawal. This is not acceptable and should not have happened if they knew what they were doing.

 

[evilanne]

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.

I requested a corrected 1099-R on January 24th and still have not gotten any update. It was sent to operations with high priority.

On another website, someone posted (Jan 31st) a letter they got from TSP

In reviewing your 2022 1099-R forms recently sent from the Thrift Savings Plan (TSP), we have determined that the distribution code included on one or more of your forms would result in the incorrect tax treatment of your distribution. As a result, we will be sending corrected 1099-R forms to your mailing address on file. Please dispose of any forms you have already received from the TSP.

Your new set of 1099-R forms will be mailed the week of January 30, please allow 5 - 7 business days for standard US Mail delivery. They will also be available for download from your Secure Participant Mailbox (SPM) in My Account after February 20, 2023. No additional action is required from you at this time....[/QUOTE]

I called today and there was no update for me & no estimated response time

I also asked about my withholding in January that was significantly understated. They said something went wrong (no details) and many people had either too much or not enough withheld. It is supposed to be corrected in February. :banghead:
Keep your fingers crossed.

 

[Scout333]

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.

I requested a corrected 1099-R on January 24th and still have not gotten any update. It was sent to operations with high priority.

On another website, someone posted (Jan 31st) a letter they got from TSP

In reviewing your 2022 1099-R forms recently sent from the Thrift Savings Plan (TSP), we have determined that the distribution code included on one or more of your forms would result in the incorrect tax treatment of your distribution. As a result, we will be sending corrected 1099-R forms to your mailing address on file. Please dispose of any forms you have already received from the TSP.

Your new set of 1099-R forms will be mailed the week of January 30, please allow 5 - 7 business days for standard US Mail delivery. They will also be available for download from your Secure Participant Mailbox (SPM) in My Account after February 20, 2023. No additional action is required from you at this time....[/QUOTE]

I called today and there was no update for me & no estimated response time

I also asked about my withholding in January that was significantly understated. They said something went wrong (no details) and many people had either too much or not enough withheld. It is supposed to be corrected in February. :banghead:
Keep your fingers crossed.

Thanks for the update EA! This helps to know that at least they are aware of these problems. Whether they fix any of them is a whole nuther story!

 

[James48843]

I think we should create an award for the stupidest modification of the TSP system over the fully functional LAST version.

Can you believe how many problems there are?

 

[sean101]

I called the TSP phone line today, and got thru right away (230pm EST). explained the error on my 1099-R, and was told that they would correct it. Will update if the corrected copy ever shows up in the mail.

 

[sean101]

received a form letter in the mail today from TSP, stating they are aware of incorrect 1099-R's going out, and they are in the process of sending out corrections.

 

[wxsensei]

Meeting exemption criteria, for years I have been receiving age-based automatic monthly TSP distributions under distribution code ‘2’. This tax season received two 1099-Rs like everyone else—one correct and one…not so much.

First reported erroneous block 7 distribution code of ‘1’ on 1099-R to TSP on January 25th. After 3 calls and being given the runaround, received callback on February 1st that they were aware of the issue, told me to shred the incorrect 1099-R I received, and that they would be mailing out corrected documents via snail-mail. Meanwhile, TSP sent the INCORRECT 1099-R to my online Thriftline mailbox on February 15th. Still no corrected 1099-R received in the mail.

 

[evilanne]

I think we should create an award for the stupidest modification of the TSP system over the fully functional LAST version.

Can you believe how many problems there are?

So many things...The whole website
Their calculator/planning tools
Withholding (Paid by check in February)
Tax Forms (still haven't gotten any corrections, went ahead & filed my taxes)

 

[evilanne]

I finally got the form letter saying my corrected forms would be mailed this week (allow 5-7 business days for standard mail) Monday and the 2 corrected 1099-Rs today.

I was going to say that I hope that doesn't interfere with my tax refund that I filed last Thursday but I just checked my Credit Union Account and it says that my refund is scheduled to be paid to my MM account on 03/03/2023 :fest30::dance::fest30: