2017 ordered RMD. Not received. Acct then transferred. 2018-found out/took RMD ASAP. Will file 5329&1040. Can we make distribution taxable in 2017 or is it stuck in 2018?

[KittyM · Accepted solution]

Even though your Required Minimum Distribution (RMD) was for 2017, it will be reported by your custodian in 2018, making it a 2018 transaction.

You may request forgiveness from the IRS for this late 2017 transaction when you file your 2018 return.

[steveghi]

Then, the RMD would be taxable in 2018, not 2017, regardless of whether the IRS forgave the penalty?

[KittyM]

Yes, that is correct.

[steveghi]

Thanks!

[lpfefferle]

You must request the waiver of penalty with your 2017 return, not 2018.  You pay the tax in 2018, but TT has us requesting the waiver NOW, which is consistent with the advice to correct it and ask for the waiver fast.

[steveghi]

I think I got it. RMD was taken in 2018 within a week of finding the error. The waiver request will include that information and be filed as part of the 2017 return. The concern was whether the tax on the RMD was due in 2017 or with the 2018 filing.