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Personal Investments • Incorrect 1099-R from Vanguard

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I converted X number of shares of a Vanguard mutual fund from my IRA to my Roth IRA on 12/29/2023. When Vanguard calculated the dollar amount of the conversion, they used the closing price from 12/28/2023 instead of 12/29/2023. Since the market dropped on the 29th, the dollar amount on my 1099-R is higher than what it should be. That means I'll have to pay more taxes. I've been trying to get Vanguard to issue a corrected 1099-R since 1/5/2024. So far, no luck.

One of the representatives said it was a "system processing error." If so, this could potentially affect anyone buying or selling mutual funds that day. I'm wondering if anyone else has a similar problem and any luck in getting Vanguard to correct it.

Thanks.
If you did your conversion on the 29th during business hours, the price at the time you did the conversion was the closing price on 12/28. Why do you think they should use the closing price from 12/29? If this was an ETF or specific stock, would you expect the conversion to be done at the market price when make the conversion or at some later price?
Since this was a mutual fund, wouldn't the conversion be executed after COB 12/29 at the NAV at that time?
I wouldn't think they would need to wait. It's just an in-kind transfer of shares from one account to another. Should be instantaneous. It seems more likely that this is what happened rather than Vanguard making a mistake.

Statistics: Posted by toddthebod — Sun Mar 24, 2024 10:54 am — Replies 6 — Views 524



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