Missed RMDs and form 5329 on Inherited IRA

[wchowe]

My Aunt passed away in December of 2017, she was 63 at the time, and wasn't taking RMDs. She had an IRA where I was the beneficiary but I wasn't aware of it until 2024. In 2024 I took a full withdrawal and closed it out. It was only $1700. I am reading that I should have been paying RMDs, but didn't. I also see where no RMDs are required in years 2021 through 2024. I'm also reading there is a statute of limitations of 3 years? I'm totally confused on how to handle this on my taxes other than reporting the 1099R I received for closing the full account. Any help is appreciated. It sounds complicated. 

[fanfare · Accepted solution]

" no RMDs are required in years 2021 through 2024."

does not apply in your situation.

--

What's done is done.

If you just learned of the IRA   --??--  you have "reasonable cause" for waiver of penalty.

IRS is unlikely to audit you , so do  nothing beyond entering the 1099-R.

@wchowe 

[wchowe]

HOW does IRS know when you inherited the IRA? I see nothing on the 1099R with the former owners date or death or social? Is it safe to just submit the 1099R and hope the IRS doesnt look into it? 

[fanfare]

I;m guessing retitling the IRA into your name as beneficiary would trigger a Form 5498 report to IRS

@wchowe 

[fanfare]

If you say you just found out about the account, can you convince the IRS of that?

@wchowe 

[wchowe]

If the IRA wasn't retitled into my name for various reasons, I shouldn't be expected to take RMDs before that. I know the account kind got lost after her death. I found out about it when TD moved the account to Schwab. 

[fanfare]

Just file the 1099-R, as I suggested originally.

@wchowe