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hp15
Level 1

RMD

I have been taking monthly withdrawals from my Traditional IRA before I reached 70 1/2. I just found a letter from my bank saying I had to take a mandatory deduction after 4/1/2021. When filing my turbo tax return for 2021 I checked the box No saying if any of the withdrawal I took was for RMD. I did take the necessary deduction required. Do I have to file a 1040-x ammended return because I didn't check yes? Nothing else is changing on my return.

1 Best answer

Accepted Solutions

RMD


@hp15 wrote:

The letter from my bank said I must start withdrawing a required minimum distribution after 4/1/2021. I am withdrawing monthly from my IRA already. 


Sounds like a form letter.

 

Your RMD is the minimum amount you must withdraw during the year based on your age and the balance in the account.  It is not a single transaction, and you can always withdraw more.  It's a good idea to take a look at your finances around December 1 and see if you need to withdraw any extra before the end of the year.

 

For example, suppose that based on your age and account balance, your RMD for 2022 is $5000.  You have been withdrawing $500 per month all year long.  You will already have withdrawn more than the minimum, so no worries.  Or, suppose you were withdrawing $400 per month.  You will come up a $200 short by the end of the year, so you need to withdraw at least $200 extra in December.

 

There are some things you can't do with your RMD, like roll it over into another retirement account.  If your RMD was $5000 and you withdrew $500 per month ($6000 total) then Turbotax would like to know what your RMD was, so it can double-check that you didn't do anything improper, like rollover the RMD portion into another account.  

View solution in original post

11 Replies
rjs
Level 15
Level 15

RMD

You do not have to file an amended return. The question about the withdrawal being an RMD just tells TurboTax whether the withdrawal is eligible to be rolled over. The answer does not appear on your tax return.


What you said about the letter from the bank, and your status with regard to RMDs, is not clear. You do not have to take an RMD until the year that you turn 72. What is your exact date of birth?

 

I assume that when you say "deduction" you mean a distribution or withdrawal from your IRA.

 

hp15
Level 1

RMD

My date of birth 10/21/1949

 

hp15
Level 1

RMD

The letter from my bank said I must start withdrawing a required minimum distribution after 4/1/2021. I am withdrawing monthly from my IRA already. 

hp15
Level 1

RMD

Yes I meant deduction. Thank you so much. You have put my mind at ease. 

hp15
Level 1

RMD

Sorry I meant distribution...still nervous since I found that letter...Appreciate your response.

RMD


@hp15 wrote:

The letter from my bank said I must start withdrawing a required minimum distribution after 4/1/2021. I am withdrawing monthly from my IRA already. 


Sounds like a form letter.

 

Your RMD is the minimum amount you must withdraw during the year based on your age and the balance in the account.  It is not a single transaction, and you can always withdraw more.  It's a good idea to take a look at your finances around December 1 and see if you need to withdraw any extra before the end of the year.

 

For example, suppose that based on your age and account balance, your RMD for 2022 is $5000.  You have been withdrawing $500 per month all year long.  You will already have withdrawn more than the minimum, so no worries.  Or, suppose you were withdrawing $400 per month.  You will come up a $200 short by the end of the year, so you need to withdraw at least $200 extra in December.

 

There are some things you can't do with your RMD, like roll it over into another retirement account.  If your RMD was $5000 and you withdrew $500 per month ($6000 total) then Turbotax would like to know what your RMD was, so it can double-check that you didn't do anything improper, like rollover the RMD portion into another account.  

rjs
Level 15
Level 15

RMD

I don't understand why the bank referred to 4/1/2021. You had to take your first RMD for 2021, and you had to take your 2021 RMD by 4/1/2022. If the total amount that you withdrew in 2021 was at least equal to your 2021 RMD amount, then you met that requirement. For all subsequent years, beginning with 2022, you must withdraw each year's RMD during the year that it's for. The extension to 4/1 of the following year is only for the first RMD. At the beginning of each year the bank should tell you how much your RMD is for that year.

 

dmertz
Level 15

RMD

That letter was probably issued in early 2020 before the bank updated its processes to accommodate that changes made by the SECURE Act which became law on December 20, 2019.  Before the SECURE Act became law, your required beginning date (RBD) for RMDs from a traditional IRA would have been April 1, 2021.  With the changes dictated by the SECURE Act, because you did not reach age 70½ before 2020 your RBD became April 1, 2022 as rjs indicated, April 1 of the year following the year you reached age 72.

 

With regard to satisfying your RMD, since you have been receiving distributions you just need to make sure that the distributions during 2021 and  2022 satisfy the RMD requirements for 2021 and 2022.

hp15
Level 1

RMD

Yes, the letter was dated 01/02/20. Thank you so much for helping me.

hp15
Level 1

RMD

Thank you so much for your assistance. 

hp15
Level 1

RMD

You made me understand now. Thank you so much for all your help.

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