RMD Calculation and Money in Limbo at End of Year

[Susan S.]

A 75 year old, >5% owner took a partial in-service distribution from a balance forward profit sharing plan. The distribution was made during the last week of December 2014 and he deposited the check in an existing rollover IRA in January 2015. So it was basically in limbo as of 12/31/14 and not included in his balance of the plan or his IRA. Since the deposit wasn't in his IRA before 12/31/14 and therefore the rollover institution is not going to include it in his RMD calculation, should I include it in my calculation of his balance as of 12/31/14 even though my allocation report reflects that it had been distributed?

[mbozek]

See P 7 of Pub 590B -IRA account balance is adjusted by outstanding rollover as of Dec 31 that is not in any account balance at the end of the preceding year. Transfer increases the account balance of the receiving IRA by the rollover amount valued as of the date of receipt.

[Susan S.]

Thank you very much!