Missed IRA Distribution
Hi,
My name is Valentina. One of my client missed 2017 IRA Distribution, so she took out her 2017 and 2018 distributions in the beginning of the year 2018. Her 2017 return on extension. Is there anyway, that we can still report half of her distribution in 2017 return and the other half in 2018? Please, advise.
Permalink Submitted by Alan - IRA critic on Wed, 2018-07-18 19:02
No, she will have to file both returns in accord with the 1099R, which will report the distributions in 2018. She also needs to file Form 5329 with her 2017 extended return and request waiver of the penalty for taking her 2017 RMD late, unless she only reached 70.5 in 2017. The IRS will usually waive the penalty if the 5329 Form is completed correctly. At least tax rates are lower in 2018 than 2017, so that may offset some of the effects of having two RMDs taxed in 2018.