I did not take rdm for ira for 2019 , took 2019 rmd on 1/22/20 how do i report this ? when ?

[DavidS127]

If 2019 was the year you reached age 70 ½, you have until April 1, 2020 to make the required minimum distribution (RMD), and the distribution is included on your 2020 tax return.

If you reached age 70 ½ before 2019, the deadline for your 2019 RMD was December 31, 2019.  If you missed that deadline, you owe a 50% excise tax on the RMD amount not withdrawn by that date.  That 50% penalty is reported on Form 5329 in the year you actually receive the RMD you missed.

But, if you believe you missed the deadline due to reasonable cause, you can request a waiver in a letter of explanation which you attach with your return along with Form 5329.

[johnsomg]

My missed 2019 RMD was paid in March 2020. Do I need to report anything on my 2019 tax forms?

[macuser_22 · Accepted solution]

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@johnsomg wrote:

My missed 2019 RMD was paid in March 2020. Do I need to report anything on my 2019 tax forms?

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If you turned 70 1/2 in 2019 and this was the first RMD then you had until April 1, 2020 to take it.

If not the first RMD then you need to ask for a waiver of the 50% penalty for a missed RMD as part of your 2019 tax return.

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.)

Unfortunately this can only be done using the "forms" mode that is only available with the desktop software if you do not have a 1099-R to file.

If you do have a 2019 1099-R to report then the RMD question in the interview will go to the form 5329 waiver interview if you say that the 2019 RMD was not taken.

If you are using the CD/download version:

Enter the forms mode and click on open form. Type in 5329. Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return).

Scroll down to Part IX line 52 and enter the RMD amount that should have been taken. On line 53 enter the amount of the RMD that was actually taken (probably zero if it was missed).

Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.

You will not pay any penalty now until the IRS determines if it will grant the waver, then they will inform you if you owe the penalty.

OR - if using the Online version and have no 2019 1099-R to file, you will have to prepare the 5329 manually .

Download the 5329 form from the IRS website and fill it out the same as above. Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions.

The 2019 5329 must be attached to your printed and mailed 2019 tax return and cannot be e-filed.

[NOTE: You can only use this method if you are requesting a waver of the penalty and there is no taxable amount on the 5329 form line 55 that must be transferred to the 1040 form]

From 5329 instructions:
Quote:
"Waiver of tax. 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.
1. Complete lines 52 and 53 as instructed.
2. 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.
3. 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. "

Download blank 2019 5329 form here:
Form: http://www.irs.gov/pub/irs-pdf/f5329.pdf
Instructions: http://www.irs.gov/pub/irs-pdf/i5329.pdf

[jhrob]

The top right of 5329 says 2020

Line 52 says minimum required distribution for 2020

Line 53 says amount actually distributed to you in 2020

Line 54 enter0

BUT since I took my rdm for 2019 IN 2020, should not line 52 and 53 say 2019 and top right of 5329 say 2019?

(i have desktop version) For I received it in 2020 not 2019. Where have I gone wrong.??

[macuser_22]

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@jhrob wrote:

The top right of 5329 says 2020

Line 52 says minimum required distribution for 2020

Line 53 says amount actually distributed to you in 2020

Line 54 enter0

BUT since I took my rdm for 2019 IN 2020, should not line 52 and 53 say 2019 and top right of 5329 say 2019?

(i have desktop version) For I received it in 2020 not 2019. Where have I gone wrong.??

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If this is a missed 2019 RMD it must be reported on a *2019* 5329.

See my post above for the procedure.

[jhrob]

Since I filed my 2019  tax return without a 2019 5329, can I file it (2019 5329)with my 2020 tax return I am completing now?

Or must I provide a copy of my previously filed 2019 along with the 2019 5329.?

Sorry to belabor a point, but your reply assumes one has not yet filed a 2019 return.  It seems redundant to send the IRS an already filed 2019 tax return which they will have in their records.

It all arises from the fact that I did not take a rdm for a 2019 already filed tax return.  It is now 2020 however the 2020 5329 does not apply to my situation.

[macuser_22]

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@jhrob wrote:

Since I filed my 2019  tax return without a 2019 5329, can I file it (2019 5329)with my 2020 tax return I am completing now?

Or must I provide a copy of my previously filed 2019 along with the 2019 5329.?

If you are requesting a wiavor of the penalty (as you should), do not include a 2019 form with your 2020 tax return - the IRS will either discard it or send it back to you.

Simply sign the 2019 5329 and mail it separately to the same IRS address that a 1040 would be mailed to - I would mail it with a tracking service (or certified mail with return  receipt) to verify receipt because the IRS does not acknowledge a 5329 other than to tell you the request was denied (very rare).