RMD acct. Transfer
I am transfering in an Account from another Broker Dealer. The client is required to take his RMD and just told me that he needs to take an additional $2500.00 Yet the assets are in Transfer and have not come in as of yet.
If the assets do not get here before 12-31-07 are we going to have a penalty? If we have him sign the RMD forms and have them ready for process well that be alright?
Thank you for the help.
Doug
Permalink Submitted by Alan Spross on Thu, 2007-12-27 00:20
Doug,
If the funds do not arrive in time, there is still a good chance to get the penalty excused per Pub 590, p 54 (06 edition). Form 5329 should be filed with the 07 return along with letter of explanation and request to excuse the penalty. By that time client should have also taken the 07 RMD from the transferred funds, and can include a copy of the statement showing the distribution.
Having the forms signed in advance may expedite the RMD if the funds are received in the next day or so, and avoid the above procedure, but the forms are not essential to getting the penalty excused.