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Get Your Taxes Done
It came to our attention only after filing our 2021 tax return that my wife possibly should have taken an RMD on an Inherited IRA left to her in 2021 (split equally between her and her three siblings) by her dad, who was 89 when he died in April of 2021 and, therefore, been taking distributions already. (My wife was 64 at the time of his death.) After the suspension of RMD regulations in 2020, we were not aware that the RMD regulations had gone back into effect for 2021. Nor were we clear on what my wife's RMD obligations were for the newly acquired Inherited IRA, given that "proposed regulations" on how to handle required distributions pertinent to the 2019 SECURE Act were not released until February of 2022 and are STILL unclear to tax professionals, let alone average taxpayers like myself.
Given all the above, my wife did not not take what appears to be a required RMD in 2021 for tax year 2021. Meanwhile, we had already filed out 2021 income tax return before even discovering this might be a problem. L, then, are:
1) Should she take an RMD asap for tax year 2021? If yes, do we file a From 5329 separately? Or must we file an entire 2021 amended return that includes the Form 5329? Or do we wait until filing taxes in 2022 and include both a 2022 RMD and also report the delinquent 2021 RMD together on the 2022 tax return? OR, should we wait until the IRS comes out with its final comments on the new regulations later this year, in case they waive the entire 2021 RMD requirement because of lack of clarity up to this point? Regardless of your answer, how should we handle the issue in terms of using TurboTax to resolve it? Thanks in advance for any thoughts or advice on how to proceed.
California, United States
Get Your Taxes Done
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