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szmz
New Member

We did not receive the usual RMD in 2018 from my wife's inherited IRA. I know we have to report it on a separate form., I assume we report it on next years taxes ?

We have received the RMD for the past several years, but this year, the financial institution did not send it. We are contacting the institution tomorrow to correct the problem.
1 Best answer

Accepted Solutions
macuser_22
Level 15

We did not receive the usual RMD in 2018 from my wife's inherited IRA. I know we have to report it on a separate form., I assume we report it on next years taxes ?

Yes, a 2019 distribution must be reported on your 2019 tax return next year along with the 2019 RMD that you must also take.

First, if you have not taken the missed RMD, take it ASAP so you can tell the IRS in the explanation statement that it has been taken.

You will need to file a 5329 form  with your 2018 tax return and request a waiver of the penalty. (The waiver would only be denied if there is no reasonable explanation and the missed RMD was not taken at all.)

This cannot be done with TurboTax since TurboTax only supports 5329 forms for the taxpayer or spouse and an inherited IRA is a separate entity.


Download the 5329 form from the IRS website and fill it out the same as above.  Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions.  Do not enter any penalty on line 55.

The 2018 5329 must be attached to your printed and mailed 2018 tax return and cannot be e-filed.

From 5329 instructions:
Quote:
"Waiver of tax.   The IRS can waive part or all 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 relief, attach a statement of explanation and file Form 5329 as follows.
1. Complete lines 52 and 53 as instructed.
2. Enter “RC” and the amount you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54.
3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55.
  The IRS will review the information you provide and decide whether to grant your request for a waiver. "

Download blank 2018 5329 form here:
Form: http://www.irs.gov/pub/irs-pdf/f5329.pdf
Instructions: http://www.irs.gov/pub/irs-pdf/i5329.pdf


**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

5 Replies
macuser_22
Level 15

We did not receive the usual RMD in 2018 from my wife's inherited IRA. I know we have to report it on a separate form., I assume we report it on next years taxes ?

Yes, a 2019 distribution must be reported on your 2019 tax return next year along with the 2019 RMD that you must also take.

First, if you have not taken the missed RMD, take it ASAP so you can tell the IRS in the explanation statement that it has been taken.

You will need to file a 5329 form  with your 2018 tax return and request a waiver of the penalty. (The waiver would only be denied if there is no reasonable explanation and the missed RMD was not taken at all.)

This cannot be done with TurboTax since TurboTax only supports 5329 forms for the taxpayer or spouse and an inherited IRA is a separate entity.


Download the 5329 form from the IRS website and fill it out the same as above.  Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions.  Do not enter any penalty on line 55.

The 2018 5329 must be attached to your printed and mailed 2018 tax return and cannot be e-filed.

From 5329 instructions:
Quote:
"Waiver of tax.   The IRS can waive part or all 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 relief, attach a statement of explanation and file Form 5329 as follows.
1. Complete lines 52 and 53 as instructed.
2. Enter “RC” and the amount you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54.
3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55.
  The IRS will review the information you provide and decide whether to grant your request for a waiver. "

Download blank 2018 5329 form here:
Form: http://www.irs.gov/pub/irs-pdf/f5329.pdf
Instructions: http://www.irs.gov/pub/irs-pdf/i5329.pdf


**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
hunterabq
Returning Member

We did not receive the usual RMD in 2018 from my wife's inherited IRA. I know we have to report it on a separate form., I assume we report it on next years taxes ?

Another no answer. I completed entry of my IRA, but when I looked where to enter hers TT picked filing joint return. But cannot report her RMD for 2020.???????????

 

Seems simple but can't find a fix and nobody at Turbo Tax that is there to help but relies on everybody's opinion but no solutions. 

fanfare
Level 15

We did not receive the usual RMD in 2018 from my wife's inherited IRA. I know we have to report it on a separate form., I assume we report it on next years taxes ?

If you did not get the required RMD in 2018 for 2018, and report that, you must amend the 2018 tax return and pay a penalty of 50% of the RMD.

you must take out the 2018 RMD as soon as possible,

and report it as income in the year you took it out, along with the RMD for that year.

You can ask the IRS to waive the penalty for "good reason".

Fortunately for you, they usually do that.

fanfare
Level 15

We did not receive the usual RMD in 2018 from my wife's inherited IRA. I know we have to report it on a separate form., I assume we report it on next years taxes ?

If you're having trouble reporting a RMD for 2020, that has nothing at all to do with a missed RMD for 2018.

 

 

fanfare
Level 15

We did not receive the usual RMD in 2018 from my wife's inherited IRA. I know we have to report it on a separate form., I assume we report it on next years taxes ?

I will have to learn to look at the posting date(s) more carefully.

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