Retirement tax questions
@mcginnis1 wrote:
Had to take more money out of IRA in 2020 to meet RMD distribution requirement for 2019. This makes the 1099-R incorrect. How do I report this extra distribution? Thank you
It does not make the 1099-R incorrect. Any money taken in 2020 can only be reported in 2021 in a 2020 1099-R that should have both the remainder of the missed RMD plus the 2020 RMD.
When you answer the RMD question after the 1099-R summary screen you must say that all of the 2019 RMD was NOT taken. The enter the amount that the RMD should have been and the actual amount taken. That will produce a 5329 form with a penalty waiver request, that is always granted if the missed RMD was taken in 2020.
