RMD

[fredazcpa]

Cllient missed RMD for 2007, even after they were told by me, in writing, and the IRA trustee and they have been doing for several years now.

which year is the penalty reported in, in 2007 or in 2008 (when the money is taken out) and should the client pay the penalty first then request it back with their excuse as to why they missed it (death in December of family member, not the spouse)

thanks for your input

Fred

[kcjenkins]

Report it in 08. I'd probably try requesting the abatement first, but there is an argument for paying it first, as that stops interest, in case you don't get the abatement. So it might depend on the amounts involved, as to which would be the wisest.