My 1099-R states my RMD, but using Table II from publication 590-B, I can take out a lesser amount because of my spouse's age. How do I show it?

[dmertz · Accepted solution]

The Form 1099-R states the amount distributed.  It says nothing about how much of that distribution was RMD.

Nowhere on your tax return is there a breakdown between distributions that satisfy your RMD and those that do not.  As long as you've received distributions large enough to satisfy your RMDs, that's all that matters.  There is nothing on your tax return that explicitly indicates that you took out more than your required distribution, nor is there any need or way for that to be explicitly shown on on your tax return.

When you enter the Form 1099-R and TurboTax asks how much was RMD, simply enter the amount that you were required to take from the account based on the appropriate life-expectancy table, Table II in your case.  The amount of the distribution in excess of that was not RMD and is the amount of the distribution that was eligible for rollover.  (If you didn't roll over any of the distribution, it doesn't matter how much of the distribution you tell TurboTax was RMD in response to this question.)

[LG37]

Thank you for your help. I apologize for not wording my question better. Let me try again: Form 5498 shows my RMD, but if I take out a lesser amount based upon Table II, how do I explain it on my tax form?

[dmertz]

As I mentioned above, no explanation is required with your tax return.  Explanation to the IRS is required only if the IRS ever questions that you received the required amount, which is unlikely.  Of course nothing prevents you from including an explanation statement with your mailed tax return if it makes you feel more comfortable.  Just be sure to keep good records.

The IRA custodian might have provided you with a required distribution amount in box 12b of Form 5498, but that's based on the information they have on file and does not actually dictate the required amount, it is not binding.  It's *your* personal responsibility to make sure that you receive a distribution of the necessary amount by the distribution deadline.  If you have not provided the custodian with the fact that your sole beneficiary of the IRA is your spouse more than 10 years younger, the custodian will conservatively base their calculation on Table I, not Table II, and will provide an RMD amount that is higher than what is actually required.  Custodians are not required to provide a value in box 12b of Form 5498.  The custodian is only required to *offer* to calculate the RMD for you if they choose to leave box 12b empty.

Regardless of what the custodian reports in box 12b of the Form 1099-R, the custodian cannot force you to take a distribution.  The custodian has no way to know if you have IRAs at other custodians from which you have made distribution to satisfy the RMD for the IRA held by this custodian.

[LG37]

Thank you for your good advice. I appreciate your explanation.

[LG37]

Thank you very much. I assumed that the IRS was monitoring the RMDs closely and would be alerted if there was a discrepancy and that I had to provide some justification on my return somewhere. I appreciate your help.