RMD received early Jan 2017 for 2016

[schirallicpa]

In fact - the check date is Jan 3, 2017.  TP claims he called and requested it before year end.  Not sure if I believe him.  Will not receive 1099-R for 2016.  This distribution will be on next years.

Any thoughts.

 

one crappy client after another....

 

[jklcpa]

I would report the shortfall on 5329 and not pay the penalty. Request abatement. If this is the first year of the RMD the case is stronger, plus looking at the calendar for December 2016 and Jan 2017, 12/31 fell on a Sat, 1/1 was Sun making 1/2 a legal holiday where all the financial institutions were closed, so if he called too late in that last week of December then it is plausible that it wasn't transacted until 1/3/17...at least that is a somewhat reasonable explanation for what could have happened.

[GraceNY]

Was this the first RMD (i.e. turned 70 1/2 during 2016)?  If so they had until 4/1/17 to take the 2016 RMD. If not, the distribution gets reported on 2017 return along with 2017 RMD.  And, I agree with jklcpa and filing 5329.

Grace

[schirallicpa]

Grace - I thought that was the case.  thanks for reminding me.  but in this guys case, he's older than that.  

Thank you Judy - I will do just that.  As was the case, he had withholding on it too.  Ooops......I think I will ignore the withholding part, and let it catch up with him next year.  

I'm ready for the week to be over!