72t annual shortage
I have a client preparing is tax return for 2009. In review of the 72t distribution, a shortage of $180.00 has been discovered. I called the investment company and when asking for documentation for the distributions for the year 2009; they could not find the documentation. My question is with this being year 2016; what would be your advice how to handle the $180.00 shortage?
In 2013, a shortage of $15.02 was discovered also.
Thank you
Permalink Submitted by Alan - IRA critic on Mon, 2016-11-28 20:44
What was the term of the SEPP plan? Has client been filing a 5329 every year, or has he just not filed for multiple years? Technically, the plan was busted in the first year of a deficient distribution, and once busted the plan ends. SEPP distributions cannot be started up after a busted plan without doing an entirely new calculation from scratch.