Ask Terry Questions 2023 Form 5498

2023 Form 5498

By Terry Savage on May 18, 2024 | Financial Planning / Retirement

I just received notice that my 2023 Form 5498 was available from Vanguard. I turned 73 this year (2024) and you helped me with starting my RMD – thanks, but now since I have filed my 2023 IRS return, and paid what I owed, do I need to file an amended 2023 return or address this in my 2024 filing?
Thanks in advance for the help,

Terry Says

Your 2023 tax return is not affected — so you don’t need to amend.  What you should do is take your RMD sometime in the next 6 months.  Then NEXT January you’ll get a 1099 for the amount withdrawn. It will all be taxed as ordinary income.  To solve any potential tax problems, when you take your RMD, you’d probably want to ask them to withhold 20% for taxes.



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