Missed RMD
A missed 2017 RMD was taken on January 3, 2018. I will file a 5329 to request a penalty waiver. In what year is the income reported?
A missed 2017 RMD was taken on January 3, 2018. I will file a 5329 to request a penalty waiver. In what year is the income reported?
Permalink Submitted by Alan - IRA critic on Sun, 2018-04-01 17:21
Income is always reported in the year of the actual distribution. Therefore the 2018 1099R will show the amount of the late 2017 RMD plus the 2018 RMD. The IRS will typically waive the penalty when self reported on a proper 5329. Hopefully, the IRS will not suspect that people are intentionally delaying their RMDs due to the reduced tax rates effective in 2018, so I would be careful in stating the “reasonable cause” with the 5329.