MonikaK1
Expert Alumni

Investors & landlords

If your brokerage determined that the distribution was made in 2023 and will report it on a 2023 Form 1099-R, and this was meant to be a Required Minimum Distribution for 2022, you will need to report a missed RMD and file Form 5329, either with your 2022 return or separately and include a statement explaining the reason for the missed distribution. 

 

You may be able to get the penalty waived if you missed taking your RMD due to an error by the financial institution. You'll calculate that penalty in Part 9 of Form 5329. To request a waiver, enter “RC” (for reasonable cause) and the amount of shortfall you want to be waived on the dotted line next to Line 54.

 

The IRS will match Form 1099-R with the information reported on the tax return for the year the form is filed with them.

 

See this tax tips article for more information about Form 5329. See also the discussion in this thread for options on how to complete and submit the form.

 

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