Retirement tax questions


@rgdid10t wrote:

I thought I would update my post since no one else responded.  macuser_22 was correct in their assessment of the non-qualified annuity distribution but what we both missed is that the CARES Act waived RMD distribution requirements for 2020 so there was no requirement to take RMD in that year.  RMDs requirements are back in force for 2021 so I will have my parents file form 5329 with their 2021 taxes indicating the RMD for 2021 has now been taken, explaining the circumstances and requesting waiver of the penalty for 2021.


Again, code 7D is a non-qualified annuity that has no RMD requirement.   Non-qualified annuities are funded with after-tax money and are never subject to RMD's reguardless of the year. 

**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.**