How to report shortfall 2023 RMD on 2024 Return?

[anla0015]

Hello,

Last year 2024 year, I took a shortfall amount of 2023 RMD in March 2024 and filled 5329 form along with 2023 return with explanation.  This year I received 2 different 1099-R - one is for the shortfall 2023 RMD amount of $1500 and another is for entire 2024 RMD amount. 

I entered 2 separate 1099-R entries on the Turbox tax program but there is no place for me to indicate the $1500 is for 2023 RMD. 

How do I report the $1500 shortfall 2023 RMD  amount on the 2024 Return? 

Is there additional form I need to file along with the 2024 Return?

[rjs · Accepted solution]

You don't have to indicate on your tax return that the $1,500 was for 2023. You already indicated that to the IRA custodian when you took the withdrawal, and you filed Form 5329 with your 2023 tax return. All you have to do on your 2024 tax return is enter the two 1099-R forms, as you have done. You don't have to do anything else.

[anla0015]

Thanks for your reply.

But how come the program also generated 5329 form for 2024 and treated the 2nd 1099-R amount (the one for 2024) as early distribution?  The amount for 2024 RMD is listed under Part I, line #2, exception code 12 on 2024 form 5329.  

[rjs]

First of all, whatever happened with the 2024 RMD has nothing to do with the reporting of the "shortfall" RMD for 2023.

If one 1099-R was treated as an early distribution, and the other 1099-R from the same account was not treated as an early distribution, it seems like you must have made a mistake entering the 1099-R for the 2024 RMD. On the 1099-R for the 2024 RMD, what is the distribution code in box 7? Go back and check your entries for that 1099-R in TurboTax and make sure that everything is entered correctly. Also review your answers to the questions that follow the entry of the 1099-R.

[anla0015]

The distribution code for Box 7 on both 1099-R forms is 7.  I went into 'My Tax Data' and deleted the 5329 form and deleted the 2nd 1099-R entry.  Then I re-enter the 2nd 1099-R entry which has the 1,500 from 2023 RMD.

This time I saved the return without step through the follow-up question for RMD, and it didn't re-generate the 5329 form.