Level 6

My client turned 72 in October but took his first RMD in Feburary 2023. Do I have to fill out form 5329 for a waiver?

Forum|Forum|3 years ago
March 7, 2023
3 replies
12 views

This is the first time I have had to deal with this in 30 years. I know it is allowed the year a taxpayer turns 72 to take it out before April 1 the following year, but I'm not sure if I need to let the IRS know with form 5329 and ask for a waiver? Or do they just look next year to make sure he has taken two. To make things more complicated, he took it from a different IRA company, which is also allowed. (And a note, he most likely will not be filing next year, the only reason he is filing this year is he didn't stop his withholding until May of 2022 and wants it back.)

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IRonMaN

Level 15

You have until April 1st so no waiver would be needed.

Slava Ukraini!

qbteachmt

Level 15

"Or do they just look next year to make sure he has taken two."

Not next year; this year (2023). In 2022, your taxpayer met the RMD requirement and took it by the due date. In 2023, they take an RMD. From now on, every year, they take an RMD. There is no more waiting to the tax filing due date.

And since he took the 2022 in 2023, only 2023 will have 2.

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IRonMaN

Level 15

But I think the last time I checked February 2023 wasn't in 2022 😉

Slava Ukraini!

qbteachmt

Level 15

Corrected my reply. For some reason, I got stuck on Oct 2022 as the taking event.

I have a client I have guided for a few years, turned 72 Jan 2023. I keep stating, "Okay, next year you'll take your RMD." And, of course, the 70 1/2 got delayed; then the 72 got delayed. They think I'm not very good at what I do...

Don't yell at us; we're volunteers

qbteachmt

Level 15

"(And a note, he most likely will not be filing next year,"

What about the RMD? That typically is taxable, at least partially.

Don't yell at us; we're volunteers

U

utah-arizona-taxladyAuthor

Level 6

No problem with doubling up on the RMD for 2023. Total income between both spouses will be less than $10K plus SS.

rbynaker

Level 13

@utah-arizona-taxlady

Sounds like what I would call a "nuisance" IRA. If the RMDs are that low it's probably not worth keeping open. Maybe do partial conversions to Roth or take more than just the RMD each year to make use of the full standard deduction.

I'm hoping to visit Southern Utah in the Fall. I've been to SLC but not to any of the parks between there and the Grand Canyon. We'll probably fly into Vegas and rent a car from there. I've met a half-dozen or so folks from this community over the past several years of travel. I'd love to add you to the list! Email me if you're interested so I'll have your contact info when I start planning. I'm pretty easy to find on the Internet.

Rick

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