The deadline for taking your required minimum distribution is usually December 31 of each year. If you don't withdraw the minimum amount from your plan, the penalty is severe: For years prior to 2023, the IRS charges you 50% of the amount you don't take on time. Beginning in 2023, this amount is reduced to 25% of the amount you don't take on time. You may be able to get the penalty waived if you missed taking your RMD due to an illness, mental incapacity, or bank error. Please see TurboTax Expert DianeW777 detailed explanation below: You must include form 5329 when you e-file and unfortunately this can only be done using the "Forms" mode which is only available with TurboTax CD/Download if you do not have a 1099-R to file. You can change to TurboTax Basic CD/Download if you choose. How to switch from TurboTax Online to TurboTax CD/Download?Once this is completed here are the steps to add Form 5329 to your return. Enter the forms mode and click on open form (left). Type in 5329. Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return) Scroll down to Part IX line 52 and enter the RMD amount that should have been taken. On line 53 enter the amount of the RMD that was actually taken (probably zero if it was missed). Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.You will not pay any penalty now until the IRS determines if it will grant the waver, then they will inform you if you owe the penalty. Please see DianeW777 original post here.

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I missed taking my rmd in 2023. What do I need to do now?

Forum|Forum|2 years ago
February 21, 2024
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TomK2023

The deadline for taking your required minimum distribution is usually December 31 of each year. If you don't withdraw the minimum amount from your plan, the penalty is severe: For years prior to 2023, the IRS charges you 50% of the amount you don't take on time. Beginning in 2023, this amount is reduced to 25% of the amount you don't take on time. You may be able to get the penalty waived if you missed taking your RMD due to an illness, mental incapacity, or bank error.

Please see TurboTax Expert DianeW777 detailed explanation below:

You must include form 5329 when you e-file and unfortunately this can only be done using the "Forms" mode which is only available with TurboTax CD/Download if you do not have a 1099-R to file.

You can change to TurboTax Basic CD/Download if you choose.

How to switch from TurboTax Online to TurboTax CD/Download?

Once this is completed here are the steps to add Form 5329 to your return.

Enter the forms mode and click on open form (left). Type in 5329.
Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return)
Scroll down to Part IX line 52 and enter the RMD amount that should have been taken.
On line 53 enter the amount of the RMD that was actually taken (probably zero if it was missed).
Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.