Missed IRA RMD for 2021 If I am over 72 did I have until April to do This?
I Missed my RMD for an IRA but read on this site if you are over 72 you have until April 15th. to take this without 50% penalty, I also toke the RMD out on Jan 6 2022 and have it included on my tax form in the RDM section but not sure if this amount should be included on the 2021 taxes or in the 2022 next year. Is this correct and what do I need to fill out on the IRS Forms? I Have Form 5329 and I see i should complete Part IX but it does not mention anything about be over 72 so there would be no late fee?
Can anyone explain what I need to do on the forms and if I still have a penalty?
Thanks
Jim Marischen
james.marishen@gmail,com
Permalink Submitted by Alan - IRA critic on Tue, 2022-04-12 18:19
Exactly how old were you on 12/31/2021? If older than 72, your 2021 RMD must have been completed by 12/31/2021. If 72, you had until 4/1/2022 to complete it (not 4/15). If your 2021 RMD is late, do not worry about the penalty, but you will have to file Form 5329 to request the penalty be waived after you have completed the missed RMD. All IRA distributions including RMDs are taxed in the year they are distributed. Please confirm age on 12/31/2021 so the 5329 completion guidance will be correct for you.
Permalink Submitted by James MARISCHEN on Wed, 2022-04-13 20:59
Alan-iracrtic:Thank you for your quick response to my question above. So I would have been 73 12/31/2021 as birthday was in August which I understand would not allow me to have taken in Jan 22 without being late and will require the 5329 Part 10 to be filled out. I also see that I should remove this RMD amount from the 2021 return and include it in the 2022 plus the RMD for 2022 in that return.
Permalink Submitted by Alan - IRA critic on Wed, 2022-04-13 23:11
Correct. It’s Part IX of the 5329 that needs to be completed to request the penalty waiver. This part of Form 5329 is not intuitive to complete, so be sure to review the instructions before completing it.