My parents appear to have missed RMD on one of their IRAs for 2020 and 2021. I have two questions.
The first is in 2020 they also took a full distribution from some sort of annuity. However, the 1099-R indicated 7D for the distribution type so based on my reading, this was non-qualified so would not have covered the RMD from the other IRA. Does that sound correct? My parents never received any notice for failing to take the RMD in 2020 and I thought they would have by now if they really missed RMD?
The second question is about filing the correct paperwork to request fee waiver from the IRS if they do need to correct for 2020 and 2021. I have found contradictory information when I have looked about how to handle. One blog I looked at said that a 5329 for 2020 must be completed and submitted with an amended 2020 tax return for the missed RMD in 2020 along with a separate 5329 for 2021 filed with 2021 taxes. Another site claimed that a 5329 can be filed with 2021 taxes indicating total missed RMD for both 2020 and 2021. I tend to think the first blog is correct because the line on 5329 asking about RMD refers to the current tax year when asking about missed RMD amount but I would like another opinion.
