@matt-hayes wrote:
I have the 1099-R for the initial rollover in June 2019. Should I have a 1099-R for the first RMD taken in March 2020 (late for 2019) ?
No. If taken in 2020 it will go on your 2020 that return next year.
If you missed the 2019 RMD then you need send a 5329 requesting a waiver of the 50% penalty that is almost always granted if the missed RMD was taken and there is a reasonable explanation.
The 5329 CANNOT be done in TurboTax since TurboTax only supports a 5320 for the taxpayer or spouse and an inherited IRA must be kept in the name of the deceased with you as benificuary. You must complete the request by hand and mail the 5329 to the address that a 1040 would be mailed to. (Or if you have not filed 2019 yet then print and mail the entire 2019 tax return with the 5329 attached).
Download blank 2019 5329 form here:
Form: http://www.irs.gov/pub/irs-pdf/f5329.pdf
Instructions: http://www.irs.gov/pub/irs-pdf/i5329.pdf
Quote:
"Waiver of tax. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows.
1. Complete lines 52 and 53 as instructed.
2. Enter “RC” and the amount you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54.
3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55.
The IRS will review the information you provide and decide whether to grant your request for a waiver. "
Line 55 should be zero.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
