Need advice on a possible issue with my age 70.5 FIRST RMD for Tax Year 2015.
In late Dec 2014 I received a lump sum payout from a former employer?s Pension plan. This payout was reported on my TY 2014 return as a non-taxable rollover. In early Jan 2015 it was deposited into my existing Traditional IRA. In Oct 2015, I took a withdrawal, intended to be the
1st RMD, based on the Dec 31 2014 balance in the IRA.It now appears that I should have ?manually? added the payout amount (credited in Jan 2015) to the 2014 ending balance. And based the Oct. withdrawal on that amount.
In calling the account custodian about this, they said, Because this is my First RMD, I have until April 1 to make up the balance of the amount that should have been withdrawn.
Would anyone here agree that this plan could be a valid way to handle the issue ?
Even if it is a valid plan, it is not clear to me how this would be reported on my tax returns for 2015, or 2016. Or which year's "RMD factor" to use on the "makeup" amount.
FYI, my age 70 DOB was Aug 2014, making 2015 my "70.5" year.
Any thoughts appreciated.