Client gave back the RMD.

[lefty]

I have a client who was forced to receive RMD payments from an old pension (job they had in 90's). The were able to read the fine print and prove that they don't need to take RMD at 62 and they never cashed the checks. The pension stopped sending checks  eventually but they issued a 1099-R for $7000.

The client doesn't have this money. I hate to have this retiree who just lost her husband have to pay tax on money she doesn't have.

I was thinking of checking box B1 (Entire distribution rolled over)

Any ideas? 

[qbteachmt]

The client had/has the right to the money. It isn't ignored. It doesn't help to state it in a way that is misleading.

She can get the money from the issuer. They would be holding the amount as Uncashed; or, they turned it over to the State. Ignoring the checks didn't change reality.

Proving you don't need RMD means contacting the entity and dealing with life.

It was not rolled over. She will be able to get the money, and use that money to pay the taxes.

This needs to be addressed. If it is supposed to be rolled, then direct transfer and get it over with.