RMD and 1099R

[suzanne_hoyt]

This is our first year taking RMD.  We received one distribution prior to April1 , 2020 but do not have a 1099R how do I report it?   We are having difficulty receiving a different RMD and may miss the April 1 deadline.  We did not receive the form they said they sent  what do we do? How do we avoid the penalty if RMD arrives late?

[JotikaT2]

It depends.

Are your referring to the 2019 tax year or 2020?

If you are referring to 2019, you should have received a Form 1099-R.  If you did not, you should contact your retirement company to ensure you receive your form so you report your income.

The Required Minimum Distribution (RMD) is actually a fixed amount that must be taken out each year once you reach 70 1/2 each year.  Your plan administrator should be following the rules to ensure you are taking the RMD. 

Attached is a link to the IRS worksheet if you need to determine what amount is. 

RMD Worksheets - IRS 

Also is a link with more information on RMD's. 

What is a RMD help article 

[rjs]

If you received your 2019 RMD in 2020, you will report it on your 2020 tax return, not on your 2019 tax return. For an RMD that you received in 2020, you will get a 1099-R after the end of 2020 (or it will be included in a 1099-R along with any other distributions that you take in 2020). This is true even if the RMD that you received in 2020 is for 2019.

[NCperson · Accepted solution]

the CARES act removes the RMD requirement for 2020.  That includes anything rolled from 2019.  

In fact, you could roll back the distribution you already took this year, as long as it is within 60 days of the day you received it.  Talk to your advisor. 

[suzanne_hoyt]

We are required to take the RMD in 2019 and we had until April 1.  We recieved the distribution from the Carpenters Annuity Trust but did not get a 1099R and we need it to report it on 2019 tax return.  The problem is that their office is closed to calls and has been since the check came due to the Covid 19.  We told them before the distribution came that we needed the 1099R and assumed they would send it with the distribution.  Are you saying we did not need to take the RMD for 2019?

[VolvoGirl]

Let's back up.  You have until April 2020 to take the first RMD for 2019.  So when did you actually take it?  In 2020 or by Dec 31, 2019?  If you took it in 2020 it goes on your 2020 return Next year.  Even though it is for the 2019 RMD you do not report it on 2019 tax return.

[NCperson]

things changed with the passage of the CARES act last week. 

That new law waived the requirement to take RMD in 2020.  So if you turned 70.5 in 2019 and had until April 1 to take that 2019 RMD payment, you no longer have to take it.  If you want to, and talk to your financial advisor, you actually have 60 days to return it.  That also means you don't have to do the 2020 RMD if you don't want to. 

and the 1099R will be issued for your 2020 tax year; it can NOT be reported with your 2019 tax return.  I am assuming you received the 2019 RMD in 2020. 

[macuser_22]

---

@suzanne_hoyt wrote:

We are required to take the RMD in 2019 and we had until April 1.  We recieved the distribution from the Carpenters Annuity Trust but did not get a 1099R and we need it to report it on 2019 tax return.  The problem is that their office is closed to calls and has been since the check came due to the Covid 19.  We told them before the distribution came that we needed the 1099R and assumed they would send it with the distribution.  Are you saying we did not need to take the RMD for 2019?

---

When did you take the distribution? 

If in 2019 then the financial institution  was required to get the 2019 1099-R to you by Jan 31, 2020.  If you did not receive it then contact the financial institution  for a copy.

Or, if in received in 2020 then nothing goes on your 2019 tax return because you were not required to take the first RMD in 2019 if you turned 70 1/2 in 2019.  That will go on your 2020 tax return next year.

If deferred to 2020 then  under the CARES act you do not need to take it at all this year because all 2020 RMD's have been temporarily suspended because of the Corona virus.

[suzanne_hoyt]

I forgot to thank you for all of your help.  I finally understood what you were trying to teach me..