IRA RMD withdrawal spans two tax years

canishel · ‎February 20, 2020

My last withdrawal for 2018 RMD (first year eligible) was in February 2019. I also took the full 2019 RMD in 2019. I used TurboTax in 2018 to include that remaining 2018 amount for 2018 taxes with no corresponding 1099R for support. That is, the $3100 needed to fulfill 2018 RMD was taken in Feb 2019. 2018 tax return is correct for the total RMD.

My 1099R for 2019 includes both withdrawals. Should I alter the 1099R entry in TurboTax for IRA withdrawal so that the correct amount is taxable for 2019? Then my TurboTax entry will not agree with the 1099R from the financial institution? If I leave it as is, I'm taxed twice for the $3100.

What else can I do?

Thanks for any help.

JulieS · ‎February 20, 2020

When you miss your RMD, you take the distribution as soon as you realize you missed it. You have to report it in the year it was distributed.

You will need to report both 1099-R forms for 2019 because that is when they were distributed.

To avoid double taxation, you need to amend your 2018 tax return and change the IRA distribution to the amount that you received. At the same time, you can ask that the penalty for not taking your RMD be waived.

You request the waiver on Form 5329 and by attaching an explanation.

Click here to learn more.

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dmertz · ‎February 20, 2020

"you need to amend your 2018 tax return and change the IRA distribution to the amount that you received"

... in 2018, if any. If you received no IRA distribution in 2018, you need to entirely remove the IRA income from your 2018 tax return. The $3,100 of your 2018 RMD that you received in 2019 should appear nowhere on your 2018 tax return.

fanfare · ‎February 20, 2020

Since it is first year, there is no penalty or form 5329 involved in this situation.

Amend to show the actual partial amount taken in 2018 and get your tax refunded.

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IRA RMD withdrawal spans two tax years

Retirement tax questions

Retirement tax questions

Retirement tax questions