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Retirement tax questions
If you missed an RMD, you will enter your explanation for Form 5329 requesting waiver of the penalty in the interview section of TurboTax regarding RMD. This transfers to the form and doesn't cause an error.
If this applies, the IRS rarely denies waivers if you have already withdrawn the missed RMD amount. You must report that you have "corrected" the missed RMD by taking the distribution, and state that it was due to reasonable error.
Check Form 5329: Review the form in FORMS mode in TurboTax. If your explanation for the missed RMD was accepted, the penalty on Form 5329, Line 55 should show as 0.
If you still see a penalty after fixing the issue, re-answer the questions regarding the RMD in the, "Let's go over any required minimum distributions (RMD)" section, as this refreshes the calculation. You could delete Form 5329 before stepping though the section to be sure.
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