Topic Thread

Missed RMD - Broker failed to timely distribute requested RMD

  • 1.  Missed RMD - Broker failed to timely distribute requested RMD

    Posted 01-08-2018 17:58
    Is there a remedy for a bank or broker who failed to timely distribute the minimum RMD that was correctly requested by the IRA account holder?
    Thank you for any guidance you can offer.
    Debbie


  • 2.  RE: Missed RMD - Broker failed to timely distribute requested RMD

    Posted 01-09-2018 11:49
    ​If the broker is registered with FINR they have a complaint process. See their website.

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    Frank Sands
    SANDS GILILLAND & COMPANY, PC
    Plano TX
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  • 3.  RE: Missed RMD - Broker failed to timely distribute requested RMD

    Posted 01-10-2018 08:48
    ​Yes, Lacerte also has a section to enter a reason for the waiver of the 50% penalty for Form 5329, Section 9.  Taxpayer must take the distribution upon realization of the error.

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    Honorine Campisi CPA
    SANDRA G. JOHNSON, CPA
    Bellmore NY
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  • 4.  RE: Missed RMD - Broker failed to timely distribute requested RMD

    Posted 01-09-2018 13:00
    I believe you can request waiver of the 50% penalty, when filing tax return.  I think I did it on ULTRATAX for a client a few years ago, it left off the penalty amount, I included an explanation, and client never heard from IRS.