Permalink Submitted by Alan - IRA critic on Thu, 2017-03-16 21:38
I don’t know. What is the full situation? Employer plan or IRA? For an IRA, the custodian does not automatically distribute RMDs because of the aggregation rules. Does participant want it back dated to even out taxable income, because the IRS will expect the income to be reported in accord with the 1099R. They would also expect a 5329 to be filed to waive the 50% penalty if the 1099R was not back dated. Another question is whether a late RMD allows the year end balance to be adjusted such that the next RMD is not larger because the year end balance was not reduced due to the prior RMD being missed.
Permalink Submitted by Alan - IRA critic on Thu, 2017-03-16 21:38
I don’t know. What is the full situation? Employer plan or IRA? For an IRA, the custodian does not automatically distribute RMDs because of the aggregation rules. Does participant want it back dated to even out taxable income, because the IRS will expect the income to be reported in accord with the 1099R. They would also expect a 5329 to be filed to waive the 50% penalty if the 1099R was not back dated. Another question is whether a late RMD allows the year end balance to be adjusted such that the next RMD is not larger because the year end balance was not reduced due to the prior RMD being missed.