Forgot to do an RMD for 2022 what to do about it now?

[JulieS]

The first step is to contact the custodian of your retirement account, explain the situation and arrange for the missed distribution to be made as soon as possible. 

The second step is to file your return with Form 5329 and a penalty waiver statement. The statement is just a simple explanation. For example:

"I discovered that missed my 2022 RMD on (date). I called (name of custodian) and asked for the missed distribution to be made as soon as possible. Please waive the penalty because this was an unintentional mistake."

If you have a 1099-R for this year, simply enter it and answer all of the follow up questions regarding your RMD. TurboTax will create Form 5329 based on your answers. This is how to do that in TurboTax online:

1. Open your return, select Federal, then Wages and Income.
2. Find IRA, 401(k), Pension Plan Withdrawals (1099-R), on the list, click Start or Review to the right. 
3. Answer the first question Yes, and click Continue.  
4. At this point you can import your 1099-R, or scroll down the bottom and select, Change how I enter my form. 
5. On the next screen, select Type it in myself, in the lower right corner.
6. Select 1099-R on the next screen and click Continue.
7. Enter your 1099-R on the next few screens. 
8. Answer all of the follow up questions.  

If you don't have a 1099-R form, you will need to use TurboTax Desktop. If you started in TurboTax Online, you can transfer to TurboTax Desktop. Click here to learn more. 

Here is how to add Form 5329 and ask for a penalty waiver in TurboTax Desktop:

 

1. Click on  Forms mode in the upper right corner.
2. Click Open form on the left side near the top.
3. Type in 5329. 
4. Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return). 
5. Click Open form in the lower right hand corner of the pop up box. 
6. Scroll down to Part IX line 52 and enter the RMD amount that should have been taken. 
7. On line 53 enter the amount of the RMD that was actually taken (zero if it was missed).
8. Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). 
9. Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.

[no-name1]

For 18 years I received an automatic RMD every year.  By Jan 31, 24 when I had not received a check or

1099-R for 2023, I contacted the plan administrator who said it was the result of a glitch in their system.  I then mailed a form they required on 2/7/24 requesting the distribution.

Your instructions are good, but don't you also have to fill in Line  55 to figure the tax on the excess accumulation per Form 5329 Instructions?  I assume this gets added to total tax and if waiver is granted would receive a refund of the penalty.

I also do not understand the 'correction window" definition. Given dates above, am I in the correction window?

[MinhT1]

The correction window is typically the end of the second tax year following the year of the missed RMD. So you are within that correction window.

When requesting a waiver, don't pay the excise tax up front. If the IRS doesn't grant your waiver request, you will be notified.