topic Re: Initial RMD in Retirement tax questions

Initial RMD

dgf3 — Thu, 23 Feb 2023 18:55:42 GMT

2022 was the first year I was required to take an RMD. I understand that I did not need to take the full RMD until April 1, 2023 so I took some in 2022 and the rest in Jan. 2023.

What is the correct way to enter this information in TurboTax so that I don't get penalized? How should I answer this question, not sure if the second or third choice is the proper answer?

I received all the RMD for 2022

I did not receive all the RMD for 2022

I was not required to take an RMD in 2022

Re: Initial RMD

JohnB5677 — Thu, 23 Feb 2023 19:24:27 GMT

Account holders reaching age 72 in 2022 must take their first RMD by April 1, 2023, and the second RMD by December 31, 2023, and each year thereafter. To be clear. The extension into April is only for the year you turn 72.

You will get a 1099-R for your 2022 distribution. It will be posted to your 2022 tax return. You will get a 1099-R for the balance of the 2022 distribution and the full 2023 distribution to be included on your 2023 tax return. You will not be penalized for this action.

Provided you comply with the April 1st, 2023, distribution requirement you should answer I received all the RMD for 2022.

IRS Required Minimum Distributions

Re: Initial RMD

dgf3 — Fri, 24 Feb 2023 19:04:59 GMT

Following your advice I completed the Federal portion. The Smart Check took me to Form 5329-T, item A, between 53 and 54: "The amount of required distributions ... upon which you request a waiver". Is this what you would expect?

Note the figure is correct, the amount I didn't pay in 2022. I can move on by just adding the explanation but just wanted to get expert feedback before closing this issue.

Re: Initial RMD

fanfare — Sat, 25 Feb 2023 00:22:56 GMT

the correct answer is "I received all my RMD" even though it is not true.

This will suppress the Form 5329 which you don't need.

@dgf3

Re: Initial RMD

dgf3 — Sat, 25 Feb 2023 17:48:07 GMT

I did choose the answer "I received all my RMD" but I still got the flag for 5329 during the Smart Check.

I think what is happening is that when I originally answered the question my answer was "I did not receive all the RMD for 2022" and the program had me enter the 1099-R information based on that answer. When I eventually got the the part where it asked for an explanation so that I wouldn't be charged a penalty I got uncomfortable and posted my original question. Seems to me that to eliminate the 5329 I need to somehow back out my original input. Any advice on how to do that?

Re: Initial RMD

fanfare — Sat, 25 Feb 2023 19:41:48 GMT

go to list of forms and delete 5329

if that does not work, delete all 1099-R and then delete 5329

@dgf3