My mother died 4ish years ago, leaving a couple of IRAs to be divided among her kids. I’ve been taking minimum distributions based on my life expectancy - a couple hundred dollars a year.
One of them was a CD that expired 4 months ago. Rather than letting the bank roll it over into something that locked it at 2 percent for the next 5 years, I opted to put it in a money market account at the same bank while I thought about it. I said, specifically, that I wanted this to remain as an IRA and continue taking the minimum distributions in the future.
So today I open the mail, and see a 1099-R from the bank for the couple hundred.
An another, for the whole IRA balance.
Yep - they treated it as if I’d withdrawn the whole shebang.
This is a rather co$tly bank error - to the tune of about 6 grand due to the way they coded it (see below; if they’d coded it differently I’d only be out 4500. yay.).
What do you think the odds are of getting them to fix it retroactively?
Also - on the expected 1099-R, the “distribution code” says 4 (which means “due to death”). On the unexpected one, the code says 1 (distribution before age 59 1/2). Shouldn’t this one also be “death”? Anyone else ever run into that sort of thing (withdrawing entire inherited IRA balance)?