Late RMD - which year for 1099?

[Guest Rider]

Financial institution did not get an RMD processed until 6 days after 12/31/05.

We are requesting a waiver of the penalty.

Should a 1099 be issued for 2005 or 2006?

Thanks

[jevd]

1099Rs are issued for the year IN WHICH the distribution takes place even if it is FOR the year before. This happens all of the time when the first years distribution is postponed to the second year. Always report the distribution in the year it takes place.

[ishi]

What are the tax implications for the 2005 Form 1040 then?

What if the RMD's should have begun in 2003, discovered the error and corrected in 2006. What are the tax implications for the 2003, 2004 and 2005 Form 1040's? RMD's were designed to get the feds their tax dollars.

[jevd]

What are the tax implications for the 2005 Form 1040 then?

What if the RMD's should have begun in 2003, discovered the error and corrected in 2006. What are the tax implications for the 2003, 2004 and 2005 Form 1040's? RMD's were designed to get the feds their tax dollars.

See form 5329 & instructions> IRS has the authority to waive the 50% underdistribution penalty on a facts and circumstances basis.