@RL1041 wrote:
John, thank you for your prompt reply, but I'm still a bit confused. I turned 72 in Sept., 2021. I set up my RMD for both IRA #1 and IRA#2 for the end of Dec. 2021. The RMD for IRA#1 took place in Dec., and I have a 1099R for that withdrawal. No problem with that one. However, the RMD for IRA#2 did not occur until Jan. 4th, 2022 due to a misunderstanding with my broker, therefore I did not receive a 1099R for that RMD. If the 2021 RMD for IRA#2 isn't reported until I file my 2022 taxes, will I be penalized? Also, If I am reading the new IRS rules correctly, in addition to the Jan. 4th RMD from IRA#2 this year, I will also need to make a second RMD from IRA#2, as well as an RMD from IRA#1 prior to Dec. 31, 2022. Am I reading that correctly?
General concepts:
First, if the bank didn't process it in 2021, it's not a 2021 withdrawal and you can't do anything about it. I suggest you change the schedule to give the bank several extra working days to process the withdrawal next time.
Second, your RMD is not a single specific transaction. It is simply the minimum amount you must withdraw, based on your age and the balance in the account. You can always withdraw more if you want, but you will be penalized if you withdraw less. It also doesn't matter when you withdraw the money. If your RMD was $5000, you could satisfy that with a single withdrawal of $5000 on December 29, or you could withdraw $500 per month throughout the year, or you would withdraw more if you wanted to spend it on something. If you withdraw let's say $10,000 in June to buy a car, you don't also have to withdraw a separate amount in December.
Third, your RMD amount is calculated based on the aggregate balances of your IRAs, and can be withdrawn from any account, you don't have to withdraw from both accounts as long as you withdraw the correct amount. For example, if you have a large IRA with an RMD of $4000 and a small IRA with an RMD of $1000, that will be satisfied by withdrawing at least $5000 from any combination of your accounts, you don't have to withdraw each specific amount from each specific account.
Now specific to you:
As stated, if you turned 72 in 2021, you have until April, 2022 to take your first RMD. You have now done that, even though part of the money was withdrawn in 2021 and part in 2022. You do indeed need to also take your full RMD for 2022 some time during 2022. But as I stated, you don't have to withdraw specifically from each account. You will calculate the total amount you need to withdraw, and must take it any time during the year, from one or both accounts, in any amount as long as your total withdrawal is equal to or more than the requirement.
