Got a call from an advisor today that is in a spot. The client filled out distribution form and a letter of instruction to not process until after a certain date. That date was her 59 1/2 birthday. However, the custodian did not receive or misplaced the LOI. So the distribution was made last year, the client nor advisor picked up on the fact the funds came a bit early. Now she gets a penalty notice, the custodian says they can’t reverse because they never got the LOI and they’ve already filed. I spoke to a CPA today and he said just write a letter begging and show the LOI and explain. So, my question here is: agree? Is a letter begging for waiver of the penalty the best or only way to go? Any experience in this? FYI the distribution was made 2-3 weeks before the 59 1/2 bday.

Thanks