Missed 2015 RMD
Had a client who did not take their 2015 RMD from their IRA account. The client had some extreme medical issues and forgot to get the RMD processed.
Is there any sort of medical type exemption to the penalty involved in not taking the RMD ?
And secondly, at this point being the new year (2016) how does the client proceed to get that 2015 RMD out of the account (being that the monies are released now, the client will not be receiving a 1099-R for 2015) ??
Thanks as always …
Gregg Guiol
Permalink Submitted by Alan - IRA critic on Tue, 2016-01-05 01:30
Gregg, the waiver will not be a problem when there are serious medical issues, especially when the client makes up the missed RMD fairly soon in the following year and fills out a 5329 requesting the waiver. The client will report both the 2015 and 2016 RMD in the year received (2016), and will get a 1099R with the combined total on it in Jan, 2017. Client should take out the missed RMD ASAP and can either take out the current year at the same time or wait as long as December to take out the current year RMD.