Two summers ago I decided to convert my Bank of America Traditional IRA to a TD Ameritrade Roth IRA. The reps at Bank of America told me that I needed to first convert the Traditional IRA into a Roth IRA at Bank of America and then I could transfer it out.<\/p>\n
Yesterday I received a letter from the IRS stating that I owe them $20,624 for “early distributions” from\u00a0two\u00a0<\/strong>IRAs. Apparently, Bank of America sent two Forms 1099-R to the IRS stating that I took\u00a0two\u00a0<\/strong>full distributions (one from the Traditional IRA during the conversion and one from the Roth IRA during the transfer) from the same lump sum of cash<\/strong>. Add in two years of interest and penalties and that gives me an effective tax rate of 93.6% for retirement distributions that I never actually took.<\/p>\n In the end I will get this resolved, but in the meantime, now I have to pay a CPA to help me resolve the issue.<\/p>\n Thanks Bank of America!<\/p>\n","protected":false},"excerpt":{"rendered":" Two summers ago I decided to convert my Bank of America Traditional IRA to a TD Ameritrade Roth IRA. The reps at Bank of America told me that I needed to first convert the Traditional IRA into a Roth IRA at Bank of America and then I could transfer it out. Yesterday I received a … Continue reading “Bank of America Incorrectly Reported 1099-R”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/ihatebankofamerica.com\/index.php?rest_route=\/wp\/v2\/posts\/166"}],"collection":[{"href":"https:\/\/ihatebankofamerica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ihatebankofamerica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ihatebankofamerica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ihatebankofamerica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=166"}],"version-history":[{"count":0,"href":"https:\/\/ihatebankofamerica.com\/index.php?rest_route=\/wp\/v2\/posts\/166\/revisions"}],"wp:attachment":[{"href":"https:\/\/ihatebankofamerica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ihatebankofamerica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ihatebankofamerica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}