what is the RMD correction window

Forum|Forum|1 year ago
February 1, 2025
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SabrinaD2

The RMD correction window is the period during which you can correct a missed Required Minimum Distribution (RMD) to potentially reduce or eliminate the associated penalty. Generally, under the Secure Act 2.0 you have until the end of the second tax year following the year the RMD was missed to correct the error. For example, if you missed an RMD in 2023, the correction deadline is December 31, 2025.

VolvoGirl

Employee

Did you not take the full RMD from your accounts? Is Turbo Tax telling you that you didn't take enough RMD and giving you a penalty? That's been happening a lot this year because they change the way to enter 1099R forms. Did you get more than 1 1099R?

When it asks about the RMD it is only asking for that one 1099R. You need to enter the amount in box 1 on that single 1099R for the RMD, not the total RMD for all. Even if they would add up to more.

M1WV

If the RMD was taking during the year, does that mean you are considered have taken the RMD before the end of the correction window?

DanaB27

If you took the RMD for 2024 in 2024 then you took the RMD in time and do not have to worry about the correction window.

Pub 590-B states:

The “correction window” is the period of time beginning on the date on which the additional tax is imposed on the distribution shortfall and ends on the earliest of the following dates:

The date of mailing the deficiency notice with respect to the imposition of this tax, or
The date the tax is assessed, or
The last day of the second taxable year that begins after the date of the taxable year in which the additional tax is imposed.

@M1WV

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