I turned 70 in March 2017. My RMD was taken out in January 2018. How do I report my RMD and taxes to the IRS?

[Coleen3 · Accepted solution]

Since 2017 is your first year for which RMD was required, the deadline for taking 2017 RMD is April 1, 2018. As it is not late yet, no special reporting is required. You'll receive 1099-R next year and report it on 2018 tax return.  Just please be sure to take the RMD for 2018 also.

As to how the distribution be taxed... it will be reported and taxed as a regular distribution.  You will receive form 1099-R with the distribution, and TurboTax will ask how much was the RMD, since it may include both, 2017 and 2018 RMD amounts, you will be able to indicate that your RMD is taken in full... no special treatment applies here.

[JBGoode]

Contradicts the answer to a similar question:  "I turned 70 1/2 in 2017 and plan to take my RMD by April 1 2018. I did take a portion of my RMD in 2017. How do I enter this in turbo tax?"
 1 comment
Have you received a 1099-R?

SweetieJean a month ago
Default user avatars original
Asked by russt540
TurboTax Free Edition
 a month ago
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 RECOMMENDED ANSWER

Enter the 1099-R and answer the RMD question that you took ALL of the RMD in 2017.   TurboTax cannot handle the part RMD for the first RMD being split to 2018.   The only purpose of the question is to apply the penalty for not taking the RMD or to not allow rolling the RMD to another account.

[JBGoode]

Note that I cannot get a 1099-R for a 2017 RMD I received in 2018.  The IRA folks tell me 2017 RMD withdrawal will be included in my 1099-R for 2018.

[macuser_22]

That is correct.  Just say yiu took all of the 2017 RMD, which you will do.   That does NOT report the RMD to the IRS.  The RMD is reported to the IRS by the IRA trustee on a 5498 form.    The TurboTax question  is only to see if yiu owe a penalty - which you do not.

[macuser_22]

If you have no 2017 1099-R to enter then you do not enter anything at all.  You will get the 2018 distribution 1099-R next January in 2019 to report on your 2018 tax return - remember to also take the 2018 RMD by the end of 2018.  The 2018 1099-R will be the total of both distributions.

[JBGoode]

Got it.  However, TurboTax asks if I have a 1099-R for this 2017 RMD taken in 2018.  And, I do not have one...and will not have one.  Do I need to prepare a substitute 1099-R (fom 4852)?

[macuser_22]

No, Unless you had a distribution in 2017.  Do not enter anything in the 1099-R interview at all.  If you started a 1099-R form and do not actually have one then delete it.

[JBGoode]

Nothing is simple.  I have five IRAs.  I took the RMD from two of them in 2017 and the other three in 2018.  Please advise.

[macuser_22]

@JBGoode -  For tax purposes you have one IRA that is then total of all IRA accounts.  Your annual RMD is based on the 2016 year end value of all IRA accounts.  You can taken the RMD from one or any IRA account.  As long at you took the total RMD is does not matter which account it came form.

However if you failed to take the total RMD then if you have at least one 2017 10990R to enter then answer the RMD question that you took part of the RMD.  The interview should then add a 5329 form for a waiver from the penalty and ask you to provide an explanation.

[JBGoode]

All right, I am clear not.  Thanks for your help.