RMD's

[Mudman84]

My financial advisor forgot to have my annuity holder send my 2018 and 2019 RMD's. If I take both of those NOW, can I file an amended 2018 return and add the 2019 RMD to last year's income? Also what happens when the annuity holder sends a 1099 at the end of this year showing three years of RMD's for 2020?

[DavidS127 · Accepted solution]

No, you do not file an amended return for a missed RMD.  You report the RMDs when they are taken in 2020. 

For the 2018 and 2018 RMD amounts not taken by the deadline for that year's RMD you will be able to report the amounts from the total distribution that were for 2018 and 2019 RMDs.

Note that the missed 2018 and 2019 RMDs will be subject to a stiff penalty, calculated on Form 5329.  There is a provision in the Instructions for Form 5329 that allows for a waiver 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 waiver relief, attach a statement of explanation and file Form 5329 as instructed in the Instructions for Form 5329 on page 8 under Waiver of tax.  TurboTax will guide you through the process.

[yarrums]

No RMD is required for 2019.  I have already filed my 2019 and want to return my RMD and transfer it to a Roth.

[yarrums]

Tax laws for 2019 have changed and now do not require taking an RMD.  How do I get my RMD returned and the tax changed?

[VolvoGirl]

I believed you can only waive the RMD for 2020.  Not 2019.  So you can skip taking it this year.  @dmertz  

[yarrums]

thanks

[dmertz]

Correct.  Only RMDs required to be taken in 2020 are waived.  Except for a 2019 RMD taken in 2020 by someone reaching age 70½ in 2019, 2019 RMDs are unaffected.  Since the 2019 RMD was reportable on your 2019 tax return, it's apparent that it was taken in 2019 and is not permitted to be rolled over, so there it nothing to change regarding this distribution on your 2019 tax return.