Can a duplicate 401(k) RMD be corrected or reversed

[Guest Jackson]

Can a duplicate RMD in a 401(k) that was issued in 2013 be corrected or reversed in 2014? We had an issue where the Participant had taken a RMD in 2013, then the custodian had also issued an RMD in 2013 for the Participant. The custodian is saying that they cannot reverse the duplicate entry because it is now 2014 and the error happened in 2013 and they cannot cross tax years.

Any thoughts or ideas about correcting this? Thanks : )

[Lou S.]

Is it with in 60 days? Can you roll it over since it isn't an RMD?

[BG5150]

They can't issue a corrected 1099-R if the participant returns the money?

Who's fault was the second RMD? Participant, administrator, carrier?

[QDROphile]

Don't they have an operational faliure that can be corrected?

[Guest Jackson]

The custodian had erroneously issued the duplicate (2nd) RMD, but they said they cannot reverse the distribution. That is a good thought, of having the participant return the money, but since it was issued in 2013 and taxes have already been withheld, I am not sure how that would work as far as getting the taxes back.

[Lou S.]

The custodian had erroneously issued the duplicate (2nd) RMD, but they said they cannot reverse the distribution. That is a good thought, of having the participant return the money, but since it was issued in 2013 and taxes have already been withheld, I am not sure how that would work as far as getting the taxes back.

Sounds like the custodian's problem.

[BG5150]

Was it for a ton of money? Is it putting the person in another tax bracket?

[Guest Jackson]

Yes, the duplicate was over $15,000