Correct an error on RMD

Submitted by Michele Meyers on Fri, 2015-07-31 13:47

The client is 70 1/2 and took an RMD but took too much money. This was in February and it’s now August. Is there any way to correct this and put the dollars back into the IRA? Thank you!



Submitted by Jose Morales on Fri, 2015-07-31 14:54

It is well past the 60 days for a rollover.  Without any other reason for the rollover not having been done within 60 days of receiving the distribution there is nothing that can be done at this point.

Submitted by Alan - IRA critic on Fri, 2015-07-31 19:24

  • You might check with the client to see if he reached 70.5 in 2014 and in Feb. was taking his 2014 RMD prior to the 4/1/2015 RBD. If that was the case, the additional funds can be applied to his 2015 RMD. While unlikely to be the situation, you could check this out.
  • Or – if this was a large amount of money, client might consider applying for a letter ruling to extend the 60 day deadline for a rollover. The user fee is based on the amount of the otherwise eligible rollover, but there would also be legal costs of at least 5k, so not worth considering unless the amount is considerable.

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