But, my mother died 11/25/2024 and I have RMD reporting question.

[edvaltaxes]

My parents both died and I am doing their taxes, as usual. But my father was alive until 1/18/2025, so his taxes are straight forward for 2024. In the case of my mother, she passed 11/25/2025. She had IRAs spread out over several institutions. All but one paid out her RMDs and generated her 1099-Rs except for one. That one bank did not and also did not take out the RMD until 1/18/2025 when they changed it to an inherited IRA and made the check out to me. But this amount was to satisfy 2024 and they are claiming that I won't get a 1099-R until the end of the year/beginning of the following year. How am I supposed to show that this was taken out for 2024? Because in 2025 I will have to take out the RMD for 2025 and it sounds from the bank that they will only be issuing me one 1099-R which will include both. Something is not right here and I don't know how to report this individual 2024 RMD for this one account, as she has a few. Please help!

[AmyC]

It is a missed RMD and she can't take it. You will have to file her taxes without the RMD and file a 5329 request for waiver and explain it was missed because she passed and that you took corrective action as soon as you discovered the issue. The IRS should allow the waiver due to the circumstances.

You'll calculate that penalty in Part 9 of Form 5329. To request a waiver, enter “RC” (for reasonable cause) and the amount of shortfall you want waived on the dotted line next to Line 54. Attach a letter to your tax return explaining the situation.

You will have to report it all on your tax return with the 1099-R when it comes. Just keep records in case the IRS asks - I really doubt they will.

I am very sorry for the loss of both parents.

[edvaltaxes]

Thank you so much. But the law was changed and I am not supposed to have a penalty, but have up until December of this year to take it without penalty. I am filing as usual through TurboTax, so is that 5329 available to fill out with the rest? And am I doing that when filing her 2024 taxes or my 2024 taxes as the beneficiary or my 2025 tax return? Sorry, no one seems to know what to do whom I have spoken to.

[AmyC]

No, you will not have a penalty. The 5329 is for her return since she didn't get it all taken. When the program asks about RMD, select the she did not take the full amount. This will lead you to the 5329. 

I went through it with my parents so I understand where you are and how hard it is. I filled out the 5329 and had no issues.  I took the RMD and put in on my return. No issues. You are doing well.

[edvaltaxes]

Thank you so much. But, since I also have to take an RMD for 2025, how will I be able to differentiate to the IRS that the 2024 was also taken? The bank only made a check out to me but it doesn't show the IRA account # on it or any paperwork proving this was for 2024. Is there a place to write this on my 2025 tax return? I'm so sorry for all the questions and also very sorry you lost your parents, too :(

[AmyC]

My dad died late in Nov also. The IRS can see account values at the end of the year for everyone.  As long as you have the paperwork trail that shows you are doing your best to follow the rules, you don't need to worry.  If the IRS didn't have so much data available, it might be different. You are smart to ask questions and know you are doing the right thing.

[edvaltaxes]

Thank you so much 🙂 Not to mention, so many of their employees were just let go, so not sure they even have the man power to chase my Mom's tiny IRA RMD, lol. Thank you and I guess I'll just have to keep a folder specific to all activity on her/my inherited IRA. Thank you again and wishing you a wonderful rest of the year.