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sandy4042
Level 4

Are a delayed first RMD (taken before April 1st) and normal RMD reported on the same 1099-R?

My spouse will be 72 next year (2023) and thus will have to begin taking his Required Minimum Distributions from his traditional IRA.  From what I've been reading he can delay his first one for 2023 until April 1st 2024.  But then will have to take the normal RMD for 2024 by Dec 31st  2024.  So two RMD's to be reported for TY 2024.  My questions are:

 

1)  Will both RMD's added together, be shown on one 1099-R for 2024?  If so, how does the IRS and Turbo Tax know that part of it was for the delayed RMD?  How does the IRS track that one did take the first RMD by April 1st?  I'm assuming the distribution code would be "7", normal distribution for both.

 

2)  What if one does a Roth conversion in any year that one also has an RMD?  Does the conversion amount get reported on the same 1099-R as the RMD?  Also, I've read if you do  both in the same year, you "must take the RMD before you do the Roth conversion".  How is it ensured that you do this, and why is this timing important?

2 Replies
Critter-3
Level 15

Are a delayed first RMD (taken before April 1st) and normal RMD reported on the same 1099-R?

1)  Will both RMD's added together, be shown on one 1099-R for 2024?  If so, how does the IRS and Turbo Tax know that part of it was for the delayed RMD?  How does the IRS track that one did take the first RMD by April 1st?  I'm assuming the distribution code would be "7", normal distribution for both.  Usually the broker will report it on ONE 1099-R form beacuse both will have the same code 7 in box 7 ... but they are not restricted to just one.

 

 

2)  What if one does a Roth conversion in any year that one also has an RMD?  Does the conversion amount get reported on the same 1099-R as the RMD?  Also, I've read if you do  both in the same year, you "must take the RMD before you do the Roth conversion".  How is it ensured that you do this, and why is this timing important?   In that tax year the first distribution must satisfy the RMD before it can be considered a conversion.  Usually the IRA custodian will monitor your RMD distributions and will not allow the RMD to be converted until the RMD is satisfied.

 

Conversions done trustee to trustee are NOT distributions.  Basically if you make sure you complete the RMD by the end of the tax year the timing of the conversion is not very important.

 

 

dmertz
Level 15

Are a delayed first RMD (taken before April 1st) and normal RMD reported on the same 1099-R?

As Critter-3 said, these distributions will typically be reported on a single Form 1099-R.  The IRS does not separately track these distributions, they generally rely on you to conform to the tax code and self-report any failure to receive the RMD timely.

 

Critter-3's reply to the second question is incorrect on all counts.  A Roth conversion indeed involves a distribution from the traditional IRA and a taxable rollover to a Roth IRA.   This distribution would typically be included on the same Form 1099-R as the RMDs.  Because only amounts in excess of your RMDs are eligible for conversion, TurboTax asks you how much of the gross amount on the Form 1099-R is RMD and then permits you to report as conversion only the amount in excess of that.  Also be aware that you are not permitted to do any Roth conversion from the IRA until the RMDs (the delayed RMD and the current-year RMD) for that IRA have been completed because the first amounts distributed are RMD that are ineligible for rollover.  Doing a Roth conversion before completing the RMD for the IRA from which the Roth conversion is being made would result in a failed conversion and an excess contribution to the Roth IRA.

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