In March 2020 we inherited a Fidelity 403B from my father. but it now appears we did not handle it properly. I've done some research, so can you please confirm the correct way to straighten out my situation?
My understanding is that in 2020 RMDs were suspended due to Covid (so we happily ignored the situation).
I also thought (incorrectly) that the rules said I had up to 10 years to take the funds, scheduled at my discretion. But it has very recently come to my attention that since my father died in Dec of 2019, there were different rules in effect, and yearly RMDs should have started the following year.
Therefore it looks like I missed the RMDs for 2021, 2022 and 2023. (2020 being suspended due to COVID)
Please comment If this is the correct course of action:
- Request the RMDs for 2021, 2022 and 2023 from Fidelity.
- File Form 5329 with my 2023 return (TT desktop)
- Include a mailed letter of explanation to see if they will waive the penalty (any chance if its been 3 years like this ?)
When I receive the RMD funds where does the income get declared? On the 2023 return, or will it be part of 2024?
Do i have to go back and amend returns for 2021 and 2022 adding the RMD for each?
This is all news to me , so I appreciate any help
Thanks
BTW Should the plan administrator (Fidelity) have been expected to send reminders about RMDs? I had no clue and never heard a word
