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    mpagels's Avatar
    mpagels Posts: 1, Reputation: 1
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    #1

    Feb 15, 2013, 01:07 PM
    Can allstate refuse to change distribution code on 1099r
    Allstate who carries an annuity for me through Licoln Benefit Life Company is refusing to show the correct distribution code of "3-Disability" on my 1099R. I was told that the company has a corporate policy and they do not show the disability code on any of their 1099R's. I proved to them in writing and they accepted receipt of the permanent disability which refuted their reason of "no known exception" and they still refuse to issue a corrected 1099R. Is there any recourse for me at this juncture? THIS IS TAX LAW QUESTION.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    Feb 15, 2013, 01:30 PM
    Not having all the details - I'm guessing this about a distribution you took from an IRA, that you are under age 59-1/2, and that Allstate is saying that they can't swear you have a permanent and total disability. But don't worry about it - you can attach form 5329 to your tax return to show that the distribution is not subject to early withdrawal penalty even though the 1099R states "no known exception." When you file Form 5329 indicate reason code 03 on line 2, "distributions due to total and permanent disability." I also suggest you attach documentation to your tax return that shows you are disabled - thisi can avoid having the IRS come after you later for it.
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