First Year RMD and YEV
I’m all set for my first RMD (turned 70.5 in 2019) I have 3 IRAs and I know their year end valuations (as of Dec 31, 2018), and I’ve taken more distributions than I needed. But I’m confused how the IRS knows how much my YEVs were. I haven’t received any Forms 5498, or any other indication that YEV was sent to the IRS. (none of my IRAs had new funds added in 2019) Thanks
Permalink Submitted by Alan - IRA critic on Wed, 2020-02-05 17:16
The Form 5498 issued last May for 2018 will show the 12/31/2018 year end values and Box 11 should be checked. You and the IRS should have received a copy. You should also have received a statement of the YEV for 2018 by 1/31/2019 and for the 2019 YEV by now.
Permalink Submitted by Michael Pressman on Wed, 2020-02-05 17:49
Thanks. But I was told that I won’t get a Form 5498 if I didn’t make any contributions to the IRA in 2019. Is that true? If so, I’m back to my original question-how does the IRS know what my YEVs are? Thanks again.Michael
Permalink Submitted by David Mertz on Wed, 2020-02-05 18:01
If you made no contributions, in place of a Form 5498 sent to you an IRA custodian is permitted to provide on a year-end statement or January statement the year-end balance and requirement to take an RMD. However, even though it shows no contributions, a Form 5498 is still sent to the IRS and will appear in your Wage & Income transcript for the year. So the IRS already knows your 2018 YEV and that you must take an RMD for 2019.
Permalink Submitted by Michael Pressman on Wed, 2020-02-05 18:20
Great.. thanks!