No, not in 2023, as indicated by xmasbaby0. If the RMD was received in February, 2024, then there is nothing to report in 2023. It will be reported in 2024 along with the RMD for 2024 (double the amount on your 2024 tax return). You may be charged a penalty but you will be able to request a waiver. You will need to check for reasonable cause.
IRAs: The RMD rules require individuals to take withdrawals from their IRAs (including SIMPLE IRAs and SEP IRAs) every year once they reach age 72 (73 if the account owner reaches age 72 in 2023 or later- does not apply to you), even if they're still employed. Owners of Roth IRAs are not required to take withdrawals during their lifetime.
Action Steps:
IF you receive the Form 1099-R in 2024 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.)
- Waiver of tax for reasonable cause. 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.
- Complete lines 52 and 53 as instructed.
- Enter “RC” and the amount of the shortfall 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.
- 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. If your request is not granted, the IRS will notify you regarding any additional tax you may owe on the shortfall.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
