You don't account for it in 2017 because you did not have any 2017 distribution. You will account (report it) on your 2018 tax return along with the 2018 RMD distribution taken before the end of 2018. The 2018 1099-R should be the total of both distributions. It only gets reported in the year actually received.
Your 5329 requesting the waiver of the penalty is the only 2017 accounting necessary.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
