Late Filing RMD With Withholding

[robertdenbo]

My RMD for 2021 was not paid.

When I contacted my IRA company this month, they deducted the RMD for 2021 and withheld an amount.

How do I include the withholding on the 5329?

[ColeenD3]

Can you clarify what you mean by "2021 RMD was not paid" and " they deducted the RMD for 2021". It sounds like you are saying the did not make a distribution but at the same time they withheld tax.

[robertdenbo]

To be more complete - RMD for 2021 was taken this week instead of in 2021. Also they took out a portion for withholding. It seems that Part IX on the 5329 form has Line 52 for the total amount of the late RMD. But I don't see a place to enter the withholding.

If am doing this wrong, I would appreciate some instructions.

Thanks

[ColeenD3]

The RMD that you actually took in 2022 will have the withholding in addition to the distribution. All you are doing with Form 5329 is declaring the lateness and asking for a waiver of the penalty.

[robertdenbo]

Does that mean that I show the RMD and withholding as if I got a 1099-R. Then the 5329 is just asking for a waiver of penalty?

[ColeenD3]

No. You do nothing this year regarding the RMD except filing a 5329 to show that you took the distribution late. You don't file a 1099-R or mock one up because you had no income or withholding in 2021. Nothing happened in 2021.

[robertdenbo]

Thank you very much.