Rmd

[rwm221]

I have a client that I have to do 3 years for. Her husband always did the taxes but had a stroke a few years ago and is in a nursing home. When I looked at his 2019 return it appears he has RMD. When I asked her about the RMD's she has no idea what I meant. How do I find out what amount the RMD amounts are. If I find out what they are, do I have here take that amount out now and file a 5329 for 2023, or would I need to file a 5329 for each year?

Thank you for your help

[Uncle Sam]

That seems quite strange. The custodian of the plan should have been sending the wife (or maybe in husband's name) notices all along-at least annually - about accumulated balances, RMD amounts (unless he withdrew prior to his mandatory RMD). Shouldn't he have records somewhere in the house regarding the 2019 return he did prepare? If the man is still alive, I suggest you ask her to ask him about the RMD he reported. Document the fact that you just came on board and complete Form 5329 for penalty relief for years where RMD was required. You didn't state age of husband in year he claimed RMD.

[New York Enrolled Agent]

I When I looked at his 2019 return it appears he has RMD.
Thank you for your help

What makes it appear he has RMD? Do you have a 1099? If yes, you should have the information to lead you as to who to call. If no, what leads to your conclusion?

[FEDUKE404]

Investment firms / banks are very aggressive in dispensing annual RMD amounts, even with no action on the recipient's part. There is usually a mandatory federal / state tax withholding percentage at the time of distribution, and everything gets reported on a Form 1099-R.
The recipient (his wife) should be able to get information as to any historical distributions.
As for the Form 5329 issue, that is a tax calculation for EACH applicable tax year. IIRC there is a penalty for the Year 1 amount, then in Year 2 their is a new penalty for the Year 2 amount PLUS the Year I penalty, etc. A simple "oops!" for one year can generally get a penalty waiver from the IRS, but not for a continuing failure to take the RMDs.

Someone has dropped the ball. Perhaps the paying institution, but more likely the tax clients.
My first step in this situation would be to obtain all historical Forms 1099-R and then compare each one to recent tax returns.

[Lion]

Also, get their transcripts to see what was reported. As other posters have said, the plan sponsors may have had his RMDs on autopay. 2020 (I think that was the year) let us NOT take RMDs and even put them back by a deadline, so you may be off the hook for 2020. Make sure you know his age, because of the recent changes in the ages when RMDs are required. If wife has POA, she'll have to contact his retirement plans for information, or provide you with appropriate permissions or POA. Charge enough, because you'll have lots of research for these returns.