Retirement tax questions
RMD's are not required until you reach a certain age. For 2023, that is 72 years old, but it was 70.5 in 2020. If you haven't reached this age yet, you may not be required to take an RMD from the annuity.
However, if you are above that age, and assuming you are trying to take steps to remedy not taking the RMD, you can request a waiver of the penalty on Form 5329. You will need to submit a letter of explanation as well.
When filing Form 5329, be sure to complete lines 52 (minimum RMD for 2023) and 53 (RMD actually distributed) as prompted. You will need to enter "RC" and the amount of the RMD that wasn't taken but should have been taken on line 54. The difference will be reported on line 55 and tax is paid on amounts on line 55. You will also need to attach a statement letting the IRS know the reason for the shortfall and showing that you are working to remedy the issue going forward.
The IRS will review your information and if they disagree, will send a notice assessing additional tax. Please see this excerpt from the instructions for Form 5329.
