Announcement

Collapse
No announcement yet.

Ira distribution

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Ira distribution

    TP was required to do rmd for 2015(not first year). Tp did not. TP corrected by taking the missing amount early 2016. TP received a 2016 1099R with a code 8. Year in box says 2015. Taxable in 2015 or 2016? I am drawing a blank. If taxable in 2015 do the amended return and do include it in gross amounts for 2016? Thanks for a response.

    #2
    Code 8 means...

    Code 8 isn't used for an RMD. That code 8 indicates a return of excess contribution or return of contribution and may also have earnings returned also. The excess occurred in 2015 and was returned in 2016. This is reported on the 2016 return, not an amended 2015 return. It should initially flow to line 15a, and then form 8606 is required as part of this also.
    jklcpa

    Comment


      #3
      missed IRA RMD

      Originally posted by TAX4US View Post
      TP was required to do rmd for 2015(not first year). Tp did not. TP corrected by taking the missing amount early 2016. TP received a 2016 1099R with a code 8. Year in box says 2015. Taxable in 2015 or 2016? I am drawing a blank. If taxable in 2015 do the amended return and do include it in gross amounts for 2016? Thanks for a response.
      If a 2016 FORM 1099-R was issued, what box do you refer to that says 2015 ?

      has your taxpayer contacted the 1099-R issuer (and / or investment provider ) to ensure it is coded correctly ?

      Comment


        #4
        Treatment of missed RMD

        Something is not right here. . .code 8 ??

        The RMD is taxable in the year it was actually taken (2016), and not in the year in which it "should" have been taken (2015).

        You cannot amend a 2015 tax return to reflect a distribution that did not even occur until 2016. If RMD penalties apply to 2015 (and other years) then you can fill out the 2015 Form 5329, and in part IX ask for an IRS waiver and then calculate the 50% penalty on a zero amount.

        Either the Form 1099-R is incorrect, or there may be other account actions and possible multiple Forms 1099-R.

        What a mess!

        FE

        Comment


          #5
          I agree taxable in year received. TP is to bring me actual copy of 1099r. This will clear confusion. Thanks to all.

          Comment

          Working...
          X