I am trying to help my Mom (85) make sure she met her RMD for 2025. If I read the IRS information correctly, she has until 4/1 to meet her RMD. It appears clear that she did not meet it. She has her IRA and a rollover that came from her deceased husband (would have been 94). Both accounts are on Vanguard and I used their tools to calculate that she needed to take an RMD of $175.38 from her account (she took $0) and $66,137.78 from the rollover account (she took $28,800). Does the RMD have to be by account or is it just the total of the two? Am I reading the IRS information correctly that she has until 4/1 to meet her 2025 RMD? On Vanguard, I don't see a way to take an RMD for the previous calendar year, does it matter? I expect the only thing it affects is their calculator and I will have to keep track of this years RMD/distributions myself. Thanks for any assistance.
Required Minimum Distribution for 2025
byu/rling_reddit intax
Posted by rling_reddit
3 Comments
When you calculate RMD, you have to include all the IRA accounts, but the dollar amount can come out of whichever account you choose or some combination thereof. She does not have until April 1, that is only for somebody taking their very first RMD when they turn the appropriate age and if they wait until April 1, they will have to take out two RMD’s in that year. At age 85, that rule does not apply to your mother, so it needs to be done by December 31. You are going to want to file a form 5329 with her tax return, and indicate that you are taking that dollar amount out now and asking for a waiver of the penalty.
https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
April 1 is for the FIRST RMD ONLY. At age 85, she has probably been doing RMDs for a few years.
Spousal Inherited IRA different rules, sort of. Did her husband die before 2019?
Hers – use the Uniform Lifetime Chart
I am guessing she kept her inherited IRA as is and her IRA as is
read publication 590-B
Fine.
She just adds the two together and divides by the divisor for the age of 85, which looks like 16.
***Age 70½ for tax years 2019 or earlier.***
If you reached age 70½ before January 1, 2020, you were required to begin receiving required minimum distributions by April 1 of the year following the year you reach age 70½.
That is only for the first RMD, after that it is supposed to be done by December 31, 2025. She is way past that one.
She can correct her booboo within two years and only pay a 10% penalty. Otherwise, she goes on Luigis and Guido’s hit list and she pays a 25% penalty.
internet search this
” did not meet my RMD requirements what is my penalty”
You will keep track of EACH YEAR’s RMDs for Mom which is what I would do.