taxpayer is 79, has not drawn RMD. Does he go back and revise all years of returns or just start now.

[momma1]

Taxpayer has bot drawn any of his RMD from IRA account. He is 79 years old. how do we correct this.

Do we go back and revise all of his returns back to when he should have been drawing? Do we just

withdraw this year.  How do we calculate penalty.  This is not a traditional IRA.  This is Gold.

[abctax55]

Your client has to withdraw all the prior missed RMD's now, and don't forget the one for 2023 (that can wait until 12.31.23).

If your client is charitably inclined, this might be the time to do a large charitable contribution directly from the withdrawal(s)

ALL the amounts will be reported on one F 1099-R for the year 2023.

F 5329 will need to be completed (maybe one for each year?  I'd have to read the instructions...)  The F 5329 can be filed separately from the F 1040

My experience is to NOT compute the penalty; write up long *sob* story explaining why the RMD's were missed and what has been done to make sure they won't be missed in the future.  It's much easier to get someone at the IRS to forgive than it is to find someone to refund the penalty paid.

By "gold", you mean the retirement assets are actually/physically gold bars/bullion/coins???

[BobKamman]

Don't waste your time on a long sob story when a short one will do.  It's going to be read by an IRS clerk who gets evaluated on production, not empathy.  

The law probably requires a 5329 for each year, but I doubt IRS will ask for or expect them.  Just get in compliance for now.  Has the taxpayer been filing 1040s?  Maybe file a separate 5329 for 2022 and mention that the failure spans multiple years. 

I don't know what a Gold IRA is, either.  Gold can be held in a traditional IRA, just not with a typical trustee.  

[momma1]

Thank you for responding so quickly.  Yes this is actual gold bars.  Does this have the same qualifications as a traditional IRA?

[PATAX]

My experience is with adequate explanation, the first time they waive penalty. Not sure though about multiple years.

[momma1]

Thank you, Should I file a 5329 for 2022 when the founds will not be drawn until 2023 and the 1099R will be issued for 2023?  I only know what the IRA Value was from 2019 forward and they have reported the same IRA total every year since then.  The taxpayer has dementia, and his wife and son are trying to get Complient.  Should I calculate from the reported amount for all years back to 2016?

I appreciate you help.  This is a mess

[IRonMaN]

Yes, file it with the 2022 return and you should include all of the missing years as to the total missing RMDs.

[momma1]

Hi,  They have already file 2022 return.  If we revise, we have to 1099R for the amount drawn. How will IRS calculate when the 1099R will be issued in 2023?  Sorry I am confused.  Not sure how to calculate back to 2015 when I only know total year end starting in 2019. Should I calculate with that amount back?

[BobKamman]

It is a common practice to withdraw in the following year, when the mistake is discovered, and just note that it was done on the 5329 when filing the "RMD missed" year.  The distribution always goes on the year of distribution, not the year of "shoulda."  

Gold has fluctuated in value from $1,377 to $2,342 an ounce in the last ten years.  If the IRA trustee hasn't been calculating the value each December 31, they at least should have been providing an inventory of what is in the account. You would be doing it wrong by using the current value of about $2,000 for the entire period.  

And how have the trustee fees been paid?