My husband took out his RMD from his IRA for 2016. He has to pay taxes on all of his RMDs. Besides listing the distribution on line 15a IRA distributions, does he have to list the amount anywhere else? It is a traditional IRA. Thanks for your help!
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Yes, line 15b
Yes, I know it would also be on line 15b. Whenever he went to the bank for a distribtuion they made sure they asked if it was part of his RMD. So I didn't know if I was missing something having to report it on our tax return.Comment
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He will list ALL of his IRA distributions, including but not limited to, his RMD. If he withdraws more than his RMD, it ALL appears on his tax return. If he withdraws less, it appears AND triggers penalties. That may be why you're thinking he could need another schedule in his return. Also, if his IRA has basis (there were years when his IRA was not deductible on his return), he would have another form.
His bank is just trying to make sure he withdraws at least his RMD. His Form 1099-R from the bank will show all his distributions. The bank won't know if he has basis in his IRA.Comment
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If all of your husband's IRA distributions are taxable, then they don't also go on line 15b, they only go on 15b ... according to the IRS's instructions.Originally posted by ruthc
Hmmm ... that's a strange question for the bank to ask. I wonder what the bank employee would say of the IRA owner replied, "No, it isn't."Originally posted by ruthcRoland Slugg
"I do what I can."Comment
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Thanks for comments
Yes, Lion, I was wondering how the IRS would know that he did make an RMD and whether that amount would be at least the minimum required distribution. That is why I questioned myself whether another form/schedule would be needed to let them know the amounts. All of his contributions were deductible. So now I am sure I would be doing the return properly by just listed the distributions. Thanks for all comments! have a great holiday and New Year!!Comment
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Form 5498, which along with DOB provides all the necessary RMD info. It is logged on the taxpayer transcript.Originally posted by ruthc View Post"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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Form 5498 tracks RMD withdrawals ??
Please explain. I understand how the bank will show new money into a retirement account and RMDs (for the following year?) on an annual Form 5498, but how does a bank ever track "RMD withdrawals" per se? The taxpayer could certainly be making withdrawals from other accounts in order to fulfill his overall RMD dollar requirement for a given year.Originally posted by Rapid Robert View Post
The only true way I know to be sure all RMD withdrawal amounts are met is to a) obtain the RMD amounts shown, via Form 5498, for each account AND b) via Forms 1099-R see if the total amount of funds withdrawn from all accounts exceeds the RMD total./b
Am I missing something?
IRS Form 5498 for 2017: https://www.irs.gov/pub/irs-pdf/f5498.pdf
FEComment
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The IRS has each Form 1099-R to know how much he withdrew and all his Forms 5498 to know his prior year 31 December balances upon which his RMD is based and his birth date to determine his required starting date and "multiplier" for each year. The IRS knows a lot about each of us! You'd add an 8606 if his IRA has basis, which it doesn't in your case, and I forget the # but a form that computes any additional tax (before 59.5, for example) or gives a specific exception. The IRS directions will help you through this, and your software should pop up needed forms (switch to an "interview" mode if this is new to you). Another good starting point is IRS Pub 590. If you're a professional tax preparer you really should take some of your CEs in retirement income. With us aging baby boomers, this is a common situation.Comment
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Thanks again!
Lion, I think I will definitely take a CE course on this topic.Comment
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Exactly. The question I was responding to (see quote) was how does the IRS know.Originally posted by FEDUKE404 View Post"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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