My elderly mother forgot to do her 2023 RMD and by the time I found out it was late December 2023. I tried but Vanguard's site constantly errored out, it took 2-3 days of attempts and I finally got the RMD to go through, but posted Jan 2, 2024. So I bought TurboTax Desktop and did her 2023 taxes, including a 5329, her taxes were zero since her income was so low. I made sure her 2024 RMD was done on time and now her Vanguard 2024 1099-R is about double what it should have been if Vanguard's site worked.
How do I handle two RMD's hitting in 2024?
Do I do something else or another 5329 because she had two RMD's in 2024?
So far she now has a big tax due from extra income thanks to Vanguard blowing her income past the standard deduction. I want to lower her tax bill to what it should be.
Thanks
You have to enter the 1099-R as it is, and your mother has to pay the tax. There is no special treatment for taking two RMDs in the same year. She does not file Form 5329 for 2024. She received the double income. The tax on the double amount is what it should be. There is nothing you can do to lower it.
You have to enter the 1099-R as it is, and your mother has to pay the tax. There is no special treatment for taking two RMDs in the same year. She does not file Form 5329 for 2024. She received the double income. The tax on the double amount is what it should be. There is nothing you can do to lower it.
Be thankful IRS always waives the penalty for missing the RMD deadline.
Thanks. That is what I feared but hoped there was a work around