@dmertz Thank you so much for your time and expertise. I have learned a lot from you. I have a new question: how can IRS determine by looking at a 1099-R whether it is a RMD distribution or a normal distribution? My 1099-R for RMD has code '7' in Box 7 but '7' is also for normal distribution. In other words if John took $1,000 himself from his Traditional IRA account (not RMD), he gets a 1099-R with code '7'. If Jane's brokerage did RMD distribution $1,000 from her Traditional IRA account in the same year and she gets her 1099-R with code '7', does her 1099-R look exactly the same everywhere as John's 1099-R? I have set up with my brokerage firm which will calculate and do RMD distribution for me every year.
