RMD

Forum|Forum|4 years ago
January 26, 2022
1 reply
2 views

I inherited IRAs from my father. Even though I am under 72 years of age, I was required to take an RMD in 2020 and 2021. My investment company made an error by failing to distribute my 2020 RMD in 2020. Therefore, I had to receive both 2020 and 2021 RMD in 2021. Will I incur a penalty when I file my 2021 taxes for not claiming the 2020 RMD in 2020 due to my investment company’s error? Also would I have to amend my 2020 return to reflect the 2020 RMD OR do I claim the 2020 and the 2021 RMDs on my 2021 return since that is the year I received the funds?

Opus 17

Level 15

Fortunately, the CARES act suspended the RMD requirement for 2020, so you won't be penalized. You simply have two withdrawals in 2021, and you will pay regular income tax on them.

(Normally, yes, there would be a penalty for missing an RMD. You would not amend your prior return, because you only report what happened in that year on that year's return. You would report the missing RMD in the year you learned about it and calculate the penalty, but you can request a waiver of the penalty for cause, on a special form that may require you to file by mail instead of e-filing. But ignore all that for 2020, you are off the hook.)