RMD taxable income when my wife is still 72?

[wjgrayson]

This is driving me crazy.  My wife turned 72 in June of 2023 and will (obviously!) turn 73 this coming June.  She rolled over her 457 to an IRA CD in summer 2023.  We received the 1099-R from our financial institution and it listed $5000 as distribution.  Is that being counted as income on our 2023 taxes?  We have not taken the distribution and thought we did not need to take it until this year (2024) when she turns 73.  Can it be taxable income when we haven't taken the distribution?  If it's taxable income, will it be taxable income on our 2024 taxes?  Was our financial institution supposed to inform us earlier when we needed to take the distribution?  We thought we didn't need to take the 2023 RMD until this calendar year and that we would be taxed on it for our 2024 tax year.  Arrrrrgh.

[VolvoGirl]

What code is in box 7 on the 1099R?  If she rolled it into a Traditional IRA account is should not be taxable.  If she put it in a ROTH IRA then it is all taxable in 2023.  You might have missed a question.  

If it was within the 60 days, after you enter the 1099R it will ask what you did with it. Pick you moved the money to another account even if you put it back into the same account. Then that will expand and you pick I rolled over all this money. Then it will expand to enter how much you rolled over.

Did they take any withholding out of it? If they did you had to add it back in from your own money when you put it back or the withholding will become a distribution by itself.

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. Check lines 4b & 5b for any taxable amounts. For a rollover line b should be zero and the word Rollover by it.

[VolvoGirl]

Individuals who reach age 72 after December 31, 2022, may delay receiving their RMDs until April 1 of the year following the year in which they turn age 73.
https://www.irs.gov/pub/irs-pdf/p590b.pdf

So it looks like she doesn't have to take the first RMD until April 1, 2025.  But then she will need to take 2 RMD in 2025 for 2024 & 2025.   So she should probably take the first RMD this year in 2024.  

[fanfare]

Code "G" in box 7 is used for a Rollover; it will not be taxable

The code for an RMD is "7".

@wjgrayson