2016 RMD not taken
Hello,
I have a client that didn’t w/d his 2016 RMD at no fault of his own. My question is there a form he will need to fill out and attach to his return? Would he do this for the 2016 year or wait till 2017 tax year (after he has w/d 2016 and 2017 RMD’s)?
Many thanks,
Mike
Permalink Submitted by Alan - IRA critic on Fri, 2017-01-20 18:12
He should first distribute the late RMD for 2016. His 2016 tax return should include Form 5329 requesting the IRS waive the penalty for “reasonable cause”. There are only 4 lines on the 5329, but client should download the 5329 Inst and check the last page for details on what to place on these lines. He can still wait until late this year to take out the 2017 RMD if he wishes. Both distributions will be taxable in 2017.