RMD withholding

[jengelbrecht]

I missed taking the RMD in 2019.  I was advised to take the distribution now which I did.  I asked that 25% of the RMD be withheld for federal income tax.  Can I claim that withholding on my 2019 tax return?  How would I do that?

[JulieS]

No, you can't do that if the distribution is made in 2020. Next spring you will receive a Form 1099-R showing the distribution and the 25% tax withheld. and you report that on your 2020 tax return.

You can ask that the penalty for failing to take your RMD be waived. Here is how to do that in TurboTax:

1. If you have 1099-R forms go ahead and enter them.
2. Click Continue when you get back to Your 1099-R entries.
3. You will get a few screens asking about Qualified Disaster Distributions.
4. Keep going until you get to, Tell Us More About Your Retirement Plan Distribution, select I did not receive all of the RMD for 2019.
5. On the next screen provide the details of your RMD, click Continue.
6. The next screen is, Let's See if We Can Reduce Your Tax Bill. On this screen enter the amount of the waiver and an explanation. The amount of the waiver is the amount of the RMD that you should have taken in 2019.

If you don't have any 1099-R forms, use the search box toward the upper right corner to search for 1099-R. Click on Jump to 1099-R. Answer the first question No, then do steps 2 through 6, above.

[fanfare]

If you get your 1099-Rs in Spring, your custodian is woefully late in meeting its obligation.

Maybe Daylight Saving Time is giving you spring fever.