Client incorrectly received RMD from custodian but was subsequently returned

Forum|Forum|5 years ago
February 6, 2021
3 replies
32 views

I have a client who automatically received their RMD at the end of Dec 2020, which she specifically informed them that she did not want it, she immediately returned it but it wasn't till Jan 2, 2021. She also already received her 1099-R with the distribution code 7 (normal distribution)... Looking for guidance on how to handle this issue. The custodian of her retirement fund told my client to reach out to their accountant.

Thanks!

ProSeries Professional

This topic has been closed for replies.

Best answer by IRonMaN

Treat it as a rollover.

IRonMaNAnswer

Level 15

Treat it as a rollover.

Slava Ukraini!

George4Tacks

Level 15

Treat as an Indirect Rollover. Screen 13, enter the 1099R then click Rollovers and enter the amount in the 1st line as To other than a Roth IRA OOPS wrong software.

FYI - the 1099R was correctly issued.

Someday there will be a 5498 issued to show the rollover (due out by 5/31)

Answers are easy. Questions are hard!

PATAX

Level 12

The custodians of retirement accounts benefit financially when individuals invest with them....yet they say "reach out to your accountant"...what a joke.

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