RMD distributions

[Horace2022]

My IRA custodian, Vanguard, did not withhold my RMD for 2022 as directed. I didn't catch this until recently and am having the RMD withdrawn effective April 17, 2023. I have asked for a waive of penalty for not taking this RMD in 2022 year. As I have no 1099-R for the year 2022, should I take it as a 2023 distribution in addition to the required RMD for 2023? This will lower my taxes for 2022 and significantly increase them for year 2023. 

[RobRue]

I had the same thing with Edward Jones, and the Financial Advisor was able to have Edward Jones correct the RMD deduction based on the proper date.  I am guessing Vanguard can make the corrections, also.

Bob

[DanaB27]

Yes, you will still have to take your RMD for 2023 and therefore will have two RMDs to report on your 2023 tax return.

[Horace2022]

Might it not be preferable to pay my 2022 taxes assuming that I was in receipt of the 2022 distribution even though I will not have a 2022 1099-R? I am in receipt of the  balance of my RMD today. Otherwise, I risk being charged interest in addition to a penalty for underpayment.  

[JulieS]

No, you aren't allowed to do that. You will still receive have two RMDs in 2023 and there is no way around paying tax on them. 

Since it is early in the year, you can make or adjust an estimated payment to avoid the penalty for 2023. 

Since you missed your RMD in 2022, you will need to report that and ask for the penalty to be waived. This is how to do that in TurboTax:

1. Select Federal, then Wages & Income.
2. Find IRA, 401(k), Pension Plan Withdrawals (1099-R), select Add/ Edit to the right.
3. Answer Yes on the next screen, or if you already have an entry in this section, click  Edit to right of the entry.
4. Continue through the follow up questions. 
   
    

[Horace2022]

Thank you so much!