Client is an inherited ira trust
Trust failed to make RMD but made up for it within 3 months after year. The delay in the issuance of the rmd was due to the fact that the administrator of the trust had serious health issues, so that there was reason for late payment to avoid penalties. Does the trust or the individual beneficiary file the form 5329 to report omission of rmd in the year required and the reasons for the delay
The trust files the Form 5329 with Form 1041. However, if the distribution was made by the end of the year following the year of death, no Form 5329 is needed because the waiver of the penalty is automatic under these circumstances. The distribution paid to the trust is reportable on the income tax return of the trust for the trust tax year during which the distribution was received.
The trust files the Form 5329 with Form 1041. However, if the distribution was made by the end of the year following the year of death, no Form 5329 is needed because the waiver of the penalty is automatic under these circumstances. The distribution paid to the trust is reportable on the income tax return of the trust for the trust tax year during which the distribution was received.