RMD + a little more--tax forms

[BG5150]

If someone's RMD is $500 and the person takes $750 from the plan paid in a lump sum, would there be one 1099-R done, or two? Assume the taxes are done correctly--participant election on RMD and 20% on amount over that.

[Lou S.]

Unless there is a diffrent reporting code (and I don't see why there would be in this case), why would you do two 1099-Rs?

[Bird]

I agree; the codes are the same whether it is an RMD or a regular distribution. The real question is whether you need two distribution election forms; I think the technical answer is "yes."

[BG5150]

I agree; the codes are the same whether it is an RMD or a regular distribution. The real question is whether you need two distribution election forms; I think the technical answer is "yes."

I would say, that if the person wanted at elast 20% withheld from the RMD and the other distribution, only one request would be needed. However, the asset carrier might want two, becasue many times they process the RMD separately.