Hi,
I have an inherited IRA from my significant other (non-spouse) who passed mid-2023. She had already withdrawn the 2023 RMD before she passed.
When I talked to Schwab in 2024 about transferring the account to me (I was just too messed up to deal with that kind of stuff until then), either Schwab misinformed me or I misunderstood what they said about continuing the RMD's each year. My takeaway at the time was just the "it all has to be withdrawn within 10 years of her passing".
Now I've learned that I should have taken a 2024 RMD.
I talked to Schwab today and they told me about the 5329 form I need to fill out and that I should proceed with that as quickly as possible (fortunately there is enough cash in the account so I don't have to worry about selling any positions at the moment). I will have to monitor things and sell a few positions to make the RMD for 2025.
I have filed my taxes electronically with Turbo Tax Premier for the last several years.
Just to make things interesting this was her SEP account. It was converted to an inherited IRA when it transferred to me.
Questions:
Can I do this 5329 process via Turbotax and do it all electronically?
I've read about requesting a waiver of the penalties . . . This makes me think I'll have to print it all out and mail it in, in order to request a waiver of the penalties. Is that just to get the 25% down to 10% penalty or try to get the entire thing waived? (the RMD is approx 15k).
I'm 58 years old. I've read that for an inhertied IRA (I was the sole beneficiary) I'm not subject to 10% "early" withdraw. Is that automatic? Or do I have to put that in with my "waiver request"?
Do I have to file an amended 2024 return? Or just do the 5329?
I literally just a week ago "filed" my taxes for 2024 electronically. I filed for the extension and paid my full estimated taxes before April 15. (turns out I was short by eight dollars: $8.00)
Thanks in advance for advice and guidance. I only realized this situation when I read a similar story on Reddit this past weekend and said "oh crap, that sounds like me!!!!".
