Have 2 IRA's. Rec'd 1099R for Dec. 2021 withdrawal. 2nd IRA withdrawal late (occ. Jan., 2022), so no 1099R. How do I report this?

[JohnW152]

If you had an IRA withdrawal in 2022, you won’t receive a 2022 Form 1099-R for it until next year, and it won't need to be reported until you file your 2022 return, next year.

You will need to report your 2021 Form 1099-R, representing your 2021 withdrawal, on your 2021 return, which you’ll file this year.

Here's how to enter your 1099-R:

1. Open (continue) your return if you don't already have it open

2. Search for 1099-R and select the Jump to link in the search results

3. Answer Yes on the Did you get a 1099-R? screen

   • If you land on the Review your 1099-R info screen instead, select Add Another 1099-R

4. Answer any questions until you get to the import screen. You'll be prompted to enter your financial institution account info and TurboTax will directly import your forms

   • If you prefer to type it in yourself, select Change how I enter my form and continue 

[RL1041]

John, thank you for your prompt reply, but I'm still a bit confused. I turned 72 in Sept., 2021. I set up my RMD for both IRA #1 and IRA#2 for the end of Dec. 2021. The RMD for IRA#1 took place in Dec., and I have a 1099R for that withdrawal. No problem with that one. However, the RMD for IRA#2 did not occur until Jan. 4th, 2022 due to a misunderstanding with my broker, therefore I did not receive a 1099R for that RMD. If the 2021 RMD for IRA#2 isn't reported until I file my 2022 taxes, will I be penalized?  Also, If I am reading the new IRS rules correctly, in addition to the Jan. 4th RMD from IRA#2 this year, I will also need to make a second RMD from IRA#2, as well as an RMD from IRA#1 prior to Dec. 31, 2022.  Am I reading that correctly?

[RaifH]

According to the IRS, your first required minimum distribution must be taken by April 1 following the year in which you turn 72. You will not be penalized even though the RMD happened in January.

You are correct about taking additional withdrawals in 2022. You will be required to take an RMD every year. In 2022, you will have to make another withdrawal from each IRA. Now that you are no longer in your first year of taking RMDs, you do not get that buffer zone of April 1. Your RMD must be taken by December 31 of each year. 

2022 is going to be a higher year of income from your IRAs than usual because you will be taking an extra distribution. If possible, you may wish to plan accordingly and either request your plan administrators withhold extra taxes or pay estimated taxes during the year. 

[Opus 17 · Accepted solution]

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@RL1041 wrote:

John, thank you for your prompt reply, but I'm still a bit confused. I turned 72 in Sept., 2021. I set up my RMD for both IRA #1 and IRA#2 for the end of Dec. 2021. The RMD for IRA#1 took place in Dec., and I have a 1099R for that withdrawal. No problem with that one. However, the RMD for IRA#2 did not occur until Jan. 4th, 2022 due to a misunderstanding with my broker, therefore I did not receive a 1099R for that RMD. If the 2021 RMD for IRA#2 isn't reported until I file my 2022 taxes, will I be penalized?  Also, If I am reading the new IRS rules correctly, in addition to the Jan. 4th RMD from IRA#2 this year, I will also need to make a second RMD from IRA#2, as well as an RMD from IRA#1 prior to Dec. 31, 2022.  Am I reading that correctly?

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General concepts:

First, if the bank didn't process it in 2021, it's not a 2021 withdrawal and you can't do anything about it.  I suggest you change the schedule to give the bank several extra working days to process the withdrawal next time.

Second, your RMD is not a single specific transaction.  It is simply the minimum amount you must withdraw, based on your age and the balance in the account.  You can always withdraw more if you want, but you will be penalized if you withdraw less.  It also doesn't matter when you withdraw the money.  If your RMD was $5000, you could satisfy that with a single withdrawal of $5000 on December 29, or you could withdraw $500 per month throughout the year, or you would withdraw more if you wanted to spend it on something.  If you withdraw let's say $10,000 in June to buy a car, you don't also have to withdraw a separate amount in December.

Third, your RMD amount is calculated based on the aggregate balances of your IRAs, and can be withdrawn from any account, you don't have to withdraw from both accounts as long as you withdraw the correct amount.  For example, if you have a large IRA with an RMD of $4000 and a small IRA with an RMD of $1000, that will be satisfied by withdrawing at least $5000 from any combination of your accounts, you don't have to withdraw each specific amount from each specific account. 

Now specific to you:

As stated, if you turned 72 in 2021, you have until April, 2022 to take your first RMD.  You have now done that, even though part of the money was withdrawn in 2021 and part in 2022.  You do indeed need to also take your full RMD for 2022 some time during 2022.  But as I stated, you don't have to withdraw specifically from each account.  You will calculate the total amount you need to withdraw, and must take it any time during the year, from one or both accounts, in any amount as long as your total withdrawal is equal to or more than the requirement.