Do I have to report what my retirement funds were at end of 2016 for RMD?

[maurykahn]

I have 1099r from two companies.  They show what I took out, but not what balances were at end of 2016.  How does IRS know I took out the correct amount?  Do I have to enter what balances were somewhere on the form?

[kerriP · Accepted solution]

No you do not report your RMD to the IRS.  That is done by the custodian of your account, and they report to the IRS as well as to the retiree.

By law, a retirement account has to have a Custodian—usually a large bank—that is independent of the financial firm that holds the money.

The custodian’s job is to insure that government regulations and protections are enforced. Part of their job is to annually report your Social Security number, Date of Birth, IRA account balance and the value of your distributions to the IRS. The IRS will then do the necessary arithmetic.

[KittyM]

In the spring of 2017, the custodians of your retirement accounts were required to send you Form 5498, which shows the balance of your account on December 31, 2016.  (You may already have received one for 2017.  Please save it for your 2018 returns.

You may call your custodians and request the information for your returns.  It also may appear on your year-end statement for your account.

This is for your convenience, and is not required to be reported to the IRS.