March 29, 2023
Hello Intuit Tax Experts
We are Joint Tax Return Taxpayers. I and my spouse executed Late RMD 2022 distribution on Jan. 17, 2023 and deducted 25% for Federal Tax Withholding from our RMD distributed amounts. Our Reasonable Cause (RC) was due to traveling abroad for 3 months Starting Oct 1, 2022, and did not request to TDAmeritrade distributing our RMD 2022 from our Traditional IRA Accounts earlier. Our traveling reason is to visit my ailing mother-in-law for her bad health living abroad, who eventually passed away on December 31, 2022. Obviously, TDAmeritrade won't issue1099R for this late RMD 2022 distribution but will be for 1099R Tax Year 2023.
We filed Separate Form 5329 (Tax 2022) for purpose of requesting "Waiver of 50% Tax Penalty" with the following *fixticious total amount Late RMD distribution Amount for each of us.
On Form 5329
Line 52 My 2022 RMD Distribution...... $1000*
Line 53 RMD distributed to you in 2022 ---- $ 0
Line 54 .... See Tax Waiver Statement for Explaination) RC ($1000) ..... $1000
Line 55 Additional Tax (Penalty) 50% of Line 54.......................................... $500
My Questions on the 25% Federal Tax Withholding for this Late RMD 2022 Distribution:
Q1. Should we include the 25% Federal Tax Withholding (retained by TDAmeritrade) in my 2022 Federal Tax Return Form 1040SR ? ; Eventhough TDAmeritrade will report the Tax Withholing on our 2023 1099R Form in early 2024.
Q2. If IRS rejected our Tax Waiver RC Requested on 2022 Form 5329, could IRS deduct 50% Penalty Tax for Late 2022 RMD from our 2022 Tax Refund (if sufficient refund amount available) ?
Q3. If IRS accepted our Tax Waiver RC Requested on 2022 Form 5329, Shall we still attach the 2023 Form 1099R reported by TD Ameritrade on Filing 2023 Federal Tax Return SR1040 ?
Your answer to this question will help some of the tax filers who encounter the same problem on thier Late RMD Distribution.
Respectfully
