When I was doing my taxes this year — at the last minute, of course — it appeared that I was going to owe about $2,000 more than I thought I should because of what appeared to be an error on the 1099-R form from T. Rowe Price for disbursements from my Entergy savings plan in 2006. Because of that, I filed for an extension on my taxes and paid what TurboTax said I owed, excluding the penalty for early withdrawal.
I thought that they had entered the wrong distribution code, so when I opened the envelope from T. Rowe Price and saw the same code in box 7 on the corrected 1099-R, I thought we were out of luck. But then why would it have been corrected?
Well, when I went back to check all of the numbers against what was already entered in TurboTax, there were some significant changes. After entering them, the tax owed is $313 instead of nearly $2000!
I’m not sure that I’m going to pursue it any further. I can live with paying the $313.
Bottom line, though: I am very satisfied that I did not stay with T. Rowe Price after I retired! In a very limited number of transactions for me, they have screwed up too many times. My financial adviser asked me to request information from T. Rowe Price on what they had reported to the IRS related to my 401k and stocks. Considering the problems to this point, I need to make sure everything is straight before tax time comes around again.
My advice for anyone considering retirement – stay away from T. Rowe Price.