topic I just realized I missed a 2019 RMD for a beneficiary IRA. How do I report that in TurboTax 2020? in Retirement tax questions

I just realized I missed a 2019 RMD for a beneficiary IRA. How do I report that in TurboTax 2020?

minutpa — Mon, 01 Mar 2021 16:56:41 GMT

Re: I just realized I missed a 2019 RMD for a beneficiary IRA. How do I report that in TurboTax 2...

DanaB27 — Mon, 01 Mar 2021 17:16:24 GMT

You will have to amend your 2019 to include the 2019 RMD. You cannot report it on your 2020 return.

Please see How do I amend a 2019 return in TurboTax?

Re: I just realized I missed a 2019 RMD for a beneficiary IRA. How do I report that in TurboTax 2020?

dmertz — Mon, 01 Mar 2021 17:37:35 GMT

minutpa, I assume that you mean that you failed to take the distribution in 2019 rather than that you took the distribution in 2019 but just failed to report it. If you took it and failed to report it, amend your 2019 tax return to add this income as DanaB27 describes. Otherwise, all you need with respect to your 2019 tax return is to file 2019 Form 5329 as I describe below.

If you didn't receive a late distribution of the 2019 RMD in 2020, nothing about this goes on your 2020 tax return.

Assuming that you have not yet taken this missed 2019 RMD, you should take the RMD now, then file 2019 Form 5329 requesting waiver of the 50% excess contribution penalty. This distribution will then be reportable and taxable on your 2021 tax return along with the 2021 RMD from this account. See the last page of the instructions for 2019 Form 5329 for requesting the penalty waiver:

https://www.irs.gov/pub/irs-prior/i5329--2019.pdf

Re: I just realized I missed a 2019 RMD for a beneficiary IRA. How do I report that in TurboTax 2020?

minutpa — Mon, 01 Mar 2021 18:37:38 GMT

Thank you, this information is very helpful. To clarify, yes - I did not take the 2019 distribution yet and still need to do that.

How do I calculate the missed 2019 distribution amount? Every calculator I've found so far only calculates today-forward distributions so I'm not sure what the 2019 distribution was supposed to be - just that I missed it.

I have correctly set up the 2021 distribution with my brokerage so should I just use that number?

Re: I just realized I missed a 2019 RMD for a beneficiary IRA. How do I report that in TurboTax 2020?

dmertz — Mon, 01 Mar 2021 18:45:17 GMT

See Figuring the Beneficiary's Required Minimum Distribution in IRA Pub 590-B:

https://www.irs.gov/publications/p590b#en_US_2019_publink1000230767

You'll figure the 2019 RMD according to those instructions using the 2018 year-end balance in the inherited IRA.