If I report required minimum distribution that was not taken in 2017 (bank error), but taken 3/18, on form 5329, do I still report it as 1099R income on tax return?

[borabora]

Bank error; Even though they have withdrawn for the tax years 2015 and 2016, they did not take husband's required minimum distribution from IRA for 2017; not discovered until now while preparing taxes for 2018 with Turbo Tax.  Will be filing form 5329 with a waiver requesting tax penalty to be waived.  Do I still report income under 1099R on 1040, and, if so, since we do not have a 1099R, what would the distribution be?

[DianeW · Accepted solution]

No, if it was withdrawn in 2018 it will be reported on your 2018 tax return.  However, you should file Form 5329 with your 2017 tax return to pay the late penalty OR request the waiver of the excess accumulation penalty on the RMD since you missed the December 31, 2017 deadline (as you indicated).

You will receive the Form 1099R in 2018 for the withdrawal, which means you will have two years included on the form for next year.

[borabora]

Thanks Diane!

[DianeW]

@borabora You're welcome.

[richmcglasson]

I have in a similar situation except I filed form 5329 and waiver with my 2016 tax return.  The 2017 1099R shows a double RMD taken for 2017.  Do I have to include that number in box 1, 2a and report the tax withheld for both RMD's?  Or do I claim only 2017 RMD info into the 1099R?