---

@DeveraC wrote:

Really? But the check wasn't cashed and he wasn't distributed the money directly. They have canceled that check to the organization so the money went back into his IRA (although technically in 2025.)

---

It's a bad situation any way you look at it.  If it's the broker's position that the $7,000 was distributed in 2024 (which may be iffy) then how do they report the $7,000 that was un-distributed in 2025?  As a contribution?  Rollover?  Was it within 60 days (I doubt it since most checks are good for 90-180 days)?

If instead we pretend the $7,000 wasn't distributed in 2024 (which may be iffy, I'd bet there's a quarterly statement somewhere showing the money coming out), did the taxpayer miss their RMD?  Pick your poison.