RMD

[jenar50]

This is my first year for doing RMDs and having multiple IRAs, I did my withdrawals in Sept. 2021 to avoid doing it twice in 2022. Unfortunately, one very small RMD fell through the crack and I just did that withdrawal today (March 21). Since the first RMD is technically not due until April 1, 2022, I think this is not a problem. But my question is, how do I report the March RMD to the IRS in TurboTax since I will not have a 1099-R?

[JohnB5677 · Accepted solution]

You do not report the March 2022 RMD on your 2021 tax return. 

You hit on the key point.  You turned 72 in 2021.  You have the option of taking all of your RMDs in 2021, or you would have to take double in 2022. 

You successfully took all but one RMD in 2021.  You will now have to take two installments of the one you took out in March 2022., along with one installment of all of the others.

Your 2022 taxes will include all the 1099-Rs for 2022.

[fanfare]

" along with one installment of all of the others."

 A 2022 RMD is required. you could take that right now if you wish.

the March withdrawal is to satisfy the 2021 RMD by April 1.

@jenar50  I guess you realize that.

You can't apply an excess over your 2021 RMD to the 2022 RMD for the next year.

This seems like a fuzzy area  @dmertz   ?

[dmertz]

When TurboTax asks if you took all of the RMD you were required to take, answer Yes.  Answering that you did not take all of your RMD will unnecessarily prepare Form 5329 Part IX to ask for a waiver of the excess-accumulation penalty, but that penalty does not apply in this case.

[fanfare]

@dmertz 

There was a remainder that was not taken in 2021 so it was taken in 2022 for 2021.

Suppose 120% of the remainder is taken out at once before April 1.

Can the excess 20% be allocated to the 2022 RMD?

I guess it's not an issue and there's nothing fuzzy about it. It is a special case.

[dmertz]

@fanfare , the total amount required to be distributed in 2022 is the remaining 2021 RMD plus the 2022 RMD.  All amounts distributed in 2022 are RMD until the total has been distributed; there is no option not to treat the 20% as RMD.

[fanfare]

@dmertz 

Like Mr. Spock's, your logic is unassailable.