@unsureof1099s wrote:
Thanks.
New problem--I think I took out too much RMD. I had asked the brokerage retirement dept. for help calculating it, not trusting myself.
I now have used their calculator and it seems that I took out over twice what I should have. Possibly the brokerage person didn't take into account that the date of death was pre-2019, even though they asked the date of death, and I told them.
Should I mention this mistake I made in the letter to the IRS, or wait to hear what they say? Can I get in trouble for accidentally taking out too much? (I assume that I still owe the excise tax on the amount I took out, unless they waive it).
No, you just took more than you needed. You don't need to mention it and it won't help.
The RMD is the minimum amount you need to withdraw, you can always withdraw more, but that doesn't give you any benefits. (It gives you more spending money, of course, and you pay the tax on it.)
Remember that for the waiver to work (you are counting a 2022 withdrawal as a late 2021 RMD) you must also at some point in 2022, take your regular 2022 RMD. That's where this money may be useful to you.
For example, suppose your 2021 RMD was supposed to be $5000, and you withdrew $9000 in 2022, and are asking the IRS to count $5000 as your 2021 RMD. Then, in December 2022, you calculate your 2022 RMD as $5500. Because you already withdrew $4000 that was not part of your 2021 RMD, you only need to withdraw an additional $1500. All that has to happen in 2022 is that you withdraw at least $5500 to count towards your 2022 RMD, it doesn't matter when you withdraw it.
(Alternatively, you have 60 days to return a distribution as a mistaken distribution. In my example, you would have 60 days to return the extra $4000 to the account. Then you would need to withdraw the full $5500 before December 31. I know your original question mentioned you made the late distribution in January, so it's too late for that, but it might help you if you make the same mistake in the future.)
