To Intuit Tax Advisor
I had encounter the same problem, I forgot to instruct Traditional IRA Account Manager to Distribute My 2022 IRA RMD for me and my spouse before the end of December 2022, but We executed the late distribution of RMD in Mid January 2023 including withholding Federal Tax Penalty Fee of 25%.
As you have instructed I intend to Create Form 1099R manually and request Waiver of Penalty on filing Form 5329 , with the reason that We were abroad for Attending Funeral Service of my In-Law who passed away on Dec. 31, 2022.
This is our first time we missed the RMD distributions on time; to avoid this happened again, I have instructed my IRA Account Mgr to schedule for future RMD Distributions in Mid October of each year.
My Question: Should I treated paying Late RMD Distribution with 25% Penalty on 5329 Form Tax Year 2023? Or IRS will impose 50% Penelties (regardless if IRS will grant us Waiver of Penalty or Not) for failing in reporting Late RMD Distribution 2022 when I filing 2023 Federal Tax Return Next Year.
Please Response my Question before I send my Federal Tax Return 2022 by mail.
Thanks
Tax Payer
Nobleman
