The RMDs not taken applied to an individual over the 70 1/2 age so none the special situation already mentioned do not apply. They should have been taken but by human error and oversight were not taken. What should do regarding these missed RMDs?
First, take all of the missed RMD's ASAP so you can say in the explanation statement that the RMD has been taken as soon as the oversight was found.
You need a separate 5329 for each missed year. The 5329 must be for that year (see the link below for past years forms).
From 5329 instructions:Waiver of tax. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows.
1. Complete lines 52 and 53 as instructed.
2. Enter “RC” and the amount you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54.
3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55.
The IRS will review the information you provide and decide whether to grant your request for a waiver.
Past years forms here:
I am in this situation. I will take the RMD this year, and pay taxes on it this year.
How do I fill out the amended returns for the prior years in such a way that I
am not paying taxes twice on the RMD shortfall(s)
The income is reportable on the tax return for the year in which the distribution occurs (for which you will receive a Form 1099-R), not on the tax return for the year that the distribution made late was required. The only thing that you do with regard to each year for which an RMD was missed is to file Form 5329 requesting waiver of the excess accumulation penalty for that year.
Do I file the 5329s (3 of them) now or wait until I do
my taxes next year (I will be taking the catchup RMDs
File the Forms 5329 upon receiving the distribution of the late RMDs. It's best not to wait beyond that and there is no need to wait beyond that. They must be mailed separately from your 2019 tax return that will be reporting the income.
RMDs have been missed for 2016,2017 and 2018.
Should we take a lump sum distribution for all 3 missed years plus 2019? Or do need to do a separate distribution for each year?
MikeDip, it doesn't matter how you take the distribution(s) as long as long as they total at least as much as the late RMDs plus the 2019 RMD. Whatever amounts are distributed in 2019 will be reported on a single Form 1099-R. You'll provide details in your explanation that accompanies the Forms 5329 requesting waivers of the excess accumulation penalties.