Missed RMD
Good Afternoon. I have a new client that did not take their 2021 RMD. The client wishes to take it now but I’m curious what the best way is to disclose this to the IRS. Can this be done without re-stating their 2021 tax return? Thank you.
Good Afternoon. I have a new client that did not take their 2021 RMD. The client wishes to take it now but I’m curious what the best way is to disclose this to the IRS. Can this be done without re-stating their 2021 tax return? Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2022-09-12 19:13
They could file a stand alone 2021 Form 5329 requesting the penalty waiver for reasonable cause after making up the missed RMD. The missed RMD will be reported on a 2022 1099R and will be taxable (along with 2022 RMD) on the 2022 return. There are only 4 lines to fill on the 5329, but they are not intuitive so the 5329 Inst should be checked carefully.