RMD was not withdrawn

[daskube]

RMD was not withdrawn in 2022 and no 1099-R was sent.  I am doing the 2022 return and the 1099-r is listed because I pulled the info from 2021. Do I delete the 1099-r for this IRA since I didn't receive it for 2022 since RMD was missed?  RMD is being remedied in 2023 and being withdrawn.  Is the missed 2022 RMD accounted for in the 2023 return since it was withdrawn in 2023 and nothing is entered on the 2022 return? The RMD for 2023 is already withdrawn.  So how is the missed 2022 RMD and the 2023 withdrawals noted on the 2023 return?  I know Form 5329 needs to be filed.  Is the being filed in 2023 when the 1099-R is received?  

I am not sure what needs to be done on the 2022 and 2023 returns to make sure I account for the RMD's correctly.  Thank you for your help.

[DanaB27 · Accepted solution]

Yes, if you didn't take your RMD in 2022 then you will need to delete the carried-over Form 1099-R. 

Yes, you will report the RMD for 2022 and 2023  withdrawn in 2023 next year on your 2023 tax return. You will enter the 2023 Form 1099-R on your 2023 tax return and indicate this was your RMD.

Since you didn't take your 2022 RMD you will need to file Form 5329 on your 2022 tax return and request a waiver of the penalty if you have reasonable cause. Please see Relief for Reasonable Cause for additional information.

If you have other Form 1099-R entered you can indicate in the follow-up questions that you didn't take your 2022 RMD and TurboTax will help you to apply for the waiver.

If you don't have any Form 1099-R entered then please see the instructions below.

Unfortunately, this can only be done using the "forms" mode which is only available with the TurboTax Desktop software if you do not have a Form 1099-R to file:

1. Enter the forms mode and click on "Open Form" and type "5329".
2. 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).
3. Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). 
4. Click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waiver.

If using the TurboTax Online version and have no 2022 Form 1099-R to file, you will have to prepare the 5329 manually.

Download Form 5329 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 2022 Form 5329 must be attached to your printed and mailed 2022 tax return and cannot be e-filed.

Please be aware that you can only use this method if you are requesting a waiver of the penalty and there is no taxable amount on Form 5329 form line 55 that must be transferred to Schedule 2 line 8.