Do I report the missed RMD in the year I should have taken it, or the year following when I receive the 1099R

[edswiatek]

Missed my 403b RMD in 2017.  Took it March 2018.  I do not have a 1099R for the 2017 amount.  Do I file the 5329 with my 2017 taxes or 2018?  Do I show the missed amount on my 2017 taxes, or do I wait for the 1099R in 2018?  If I take it in 2017, How do I do that? 

[Coleen3 · Accepted solution]

A missed 2017 RMD taken in 2018 is reported on the 2018 tax return along with the 2018 RMD.  Nothing goes on a 2017 tax return because there was no 2016 distribution.

Download the 5329 form from the IRS website and fill it out the same as above.  Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions.

You will need to file a 5329 form and request a waiver of the penalty.  (The waiver would only be denied if there is no reasonable explanation and the missed RMD was not taken at all.)

It is not necessary to amend 2017 to sent the 5329 unless there is another reason to amend that changes the taxable amount.

From 5329 instructions:

Quote:

"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. 

"http://www.irs.gov/pub/irs-pdf/f5329.pdf 

[gemcclain]

Can the form 5329 be filed electronically when a waiver on missed rmd is requested.

[jrsspeedy]

Do I report the missed RMD in the year I should have taken it, or the year following when I receive the 1099R

[MarilynG1]

Report your 2023 missed RMD (that you took in 2024) using the 1099-R you received.  If you received your RMD prior to April 15, 2024, then it is not considered late, so no penalty.

If you also took RMD for 2024, you'll have two 1099-R's to report on your 2024 return.

Here's more info on Missed RMD in Prior Year. 

@jrsspeedy 

[fanfare]

Both. Missing an RMD results in a penalty for the year you missed it.

Being on the honor system, you have to file Form 5329.

@jrsspeedy