RMD Error

Forum|Forum|3 years ago
February 28, 2023
3 replies
12 views

I am lost on how to handle this.

76 year old Client asked for RMD of $709 late in December. Brokerage firm error did not distribute until January 26th after representative came back from vacation

Brokerage firm is not going to issue a 1099 for the year 2022

Delima: Since the $709 will be on the 2023 1099, do I do anything on the 2022 tax return for this amount? Will a letter be sufficient to abate the penalty for not receiving the RMD in 2022?

ProSeries Basic

This topic has been closed for replies.

rbynaker

Level 13

See Form 5329 Part IX and related instructions.

Skylane

Intuit Community Champion

Pay some attention to the note on Waiver of tax for reasonable cause

If at first you don’t succeed…..find a workaround

BobKamman

Level 15

I tell my clients to take their RMD early in the year, because if they live until the November and December holidays this is the kind of problem that always gets in the way. The brokers used to tell people to wait until late in the year to continue earning tax-deferred income, but most of them by now have figured out they need to avoid problems like this, and the market is going down anyway.

Skylane

Intuit Community Champion

I don’t really care when they take their distributions, but insist that they sign up for automatic RMD distributions.

If at first you don’t succeed…..find a workaround

BobKamman

Level 15

You will care if they sign up for automatic December distributions, and they die November 30 (did a return yesterday for a 96-year-old who made it that far) and their five beneficiaries have no clue what to do before the end of the year.

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