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Missed RMDs and form 5329 on Inherited IRA

Forum|Forum|1 year ago
March 2, 2025
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My Aunt passed away in December of 2017, she was 63 at the time, and wasn't taking RMDs. She had an IRA where I was the beneficiary but I wasn't aware of it until 2024. In 2024 I took a full withdrawal and closed it out. It was only $1700. I am reading that I should have been paying RMDs, but didn't. I also see where no RMDs are required in years 2021 through 2024. I'm also reading there is a statute of limitations of 3 years? I'm totally confused on how to handle this on my taxes other than reporting the 1099R I received for closing the full account. Any help is appreciated. It sounds complicated.

Best answer by fanfare

" no RMDs are required in years 2021 through 2024."

does not apply in your situation.

--

What's done is done.

If you just learned of the IRA --??-- you have "reasonable cause" for waiver of penalty.

IRS is unlikely to audit you , so do nothing beyond entering the 1099-R.

@wchowe

fanfareAnswer

" no RMDs are required in years 2021 through 2024."

does not apply in your situation.

--

What's done is done.

If you just learned of the IRA --??-- you have "reasonable cause" for waiver of penalty.

IRS is unlikely to audit you , so do nothing beyond entering the 1099-R.

@wchowe

W

wchoweAuthor

HOW does IRS know when you inherited the IRA? I see nothing on the 1099R with the former owners date or death or social? Is it safe to just submit the 1099R and hope the IRS doesnt look into it?

fanfare

If the IRA wasn't retitled into my name for various reasons, I shouldn't be expected to take RMDs before that. I know the account kind got lost after her death. I found out about it when TD moved the account to Schwab.

Just file the 1099-R, as I suggested originally.

@wchowe