Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax questions posed by producers.  Here’s the question of the day.

Question: My client is 74 years old and has received no required minimum distributions (RMD) information from the custodian of her IRA.  Isn’t the custodian supposed to send such information?

Answer: Yes.  IRS Notice 2002-27 spells out the reporting requirements for IRA custodians.

If a minimum distribution is required with respect to an IRA for a calendar year and the IRA owner is alive at the beginning of the year, the trustee that held the IRA as of December 31 of the prior year must provide a statement to the IRA owner by January 31 of the calendar year regarding the required minimum distribution….

According to the IRS website, although the custodian of the IRA is required to report the RMD to the taxpayer and the IRS, the ultimate responsibility for calculating and taking the RMD lies with the taxpayer.  In other words, just because you didn’t get notice doesn’t excuse you from taking your RMD.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.