...make sure you have the correct Form 1099-R. If you are receiving level payments from your Retirement Funds, Northern Trust probably
encoded your 1099-R wrong. Block number 7 should show a 2; if there is a 1 in block 7, it indicates that the 10% must be paid for early
withdrawal.Northern Trust has sent out letters to all those affected. They can't say how long it'll be before corrected copies are mailed, though. Incorrect information was sent to the IRS and Northern Trust has to correct the mistake separately for each account holder; they can't just inform the IRS of the error and have a correction made for everyone at once.
Thanks to Lou & Jim Atkins for reporting this problem.
HOME