I took my RMD a day late. What should i do?

5 replies
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I took it on January 2, 2025, instead of by December 31, 2024. I never got a notification from my Bank in 2024

rjsAnswer

Level 15

Expert Reviewed

First of all, was 2024 the first year that you were required to take an RMD? (Did you turn 73 in 2024?) If so, you are not really late. You have until April 1, 2025 (not April 15) to take your first RMD. If this is the case, you don't have to do anything.

If you turned 73 in 2023 or earlier, the RMD is actually late. In that case, you have to file Form 5329 with your 2024 tax return to request a waiver of the 25% penalty for not taking the RMD on time. You will almost certainly get the waiver if taking the RMD late "was due to reasonable error and you are taking reasonable steps to remedy the shortfall." Taking the RMD in January was a reasonable step to remedy the error. You will also include a short statement explaining why it was late and what you did to correct the error.

You will not get a 2024 Form 1099-R for the distribution that you took in 2025. If you have any Form 1099-R for 2024, after you enter all your 1099-Rs in TurboTax and proceed through the interview, you will come to a screen that asks you if you received all the RMD that you were required to take for 2024. If you answer that you did not, it will lead you through requesting the waiver and entering an explanation. In the explanation, in addition to a brief explanation of why it was late, be sure to say that you took the distribution in January.

Unfortunately, there is a defect in the TurboTax interview that makes it impossible to fill out Form 5329 if you did not receive any 1099-R for 2024. The only way to do it is in forms mode, which is only available in the desktop TurboTax software, not in TurboTax Online. That means you will have to use the desktop software to file your 2024 tax return.

In any case, you still have to take your 2025 RMD in 2025. Your 1099-R for 2025 will include both the 2025 RMD and the 2024 RMD that you took in January 2025. So you will be paying tax on the RMDs for two years on your 2025 tax return.

rjs

Answer

Level 15

Expert Reviewed

First of all, was 2024 the first year that you were required to take an RMD? (Did you turn 73 in 2024?) If so, you are not really late. You have until April 1, 2025 (not April 15) to take your first RMD. If this is the case, you don't have to do anything.

If you turned 73 in 2023 or earlier, the RMD is actually late. In that case, you have to file Form 5329 with your 2024 tax return to request a waiver of the 25% penalty for not taking the RMD on time. You will almost certainly get the waiver if taking the RMD late "was due to reasonable error and you are taking reasonable steps to remedy the shortfall." Taking the RMD in January was a reasonable step to remedy the error. You will also include a short statement explaining why it was late and what you did to correct the error.

You will not get a 2024 Form 1099-R for the distribution that you took in 2025. If you have any Form 1099-R for 2024, after you enter all your 1099-Rs in TurboTax and proceed through the interview, you will come to a screen that asks you if you received all the RMD that you were required to take for 2024. If you answer that you did not, it will lead you through requesting the waiver and entering an explanation. In the explanation, in addition to a brief explanation of why it was late, be sure to say that you took the distribution in January.

Unfortunately, there is a defect in the TurboTax interview that makes it impossible to fill out Form 5329 if you did not receive any 1099-R for 2024. The only way to do it is in forms mode, which is only available in the desktop TurboTax software, not in TurboTax Online. That means you will have to use the desktop software to file your 2024 tax return.

In any case, you still have to take your 2025 RMD in 2025. Your 1099-R for 2025 will include both the 2025 RMD and the 2024 RMD that you took in January 2025. So you will be paying tax on the RMDs for two years on your 2025 tax return.

B

Bowtone

Level 2

Hi. Is there an update to this answer for 2025? I am using the desktop version and while I can locate f5329, it will not save the explanation and just "loops" between the error and trying to accept the explanation.

I've seen others suggest attaching an explanation separately but there is no "paperclip" showing on the windows desktop.

Thank you for your help.

MarilynG

Alumni - Intuit

When you enter your 1099-R, you're asked about your RMD. If you enter your required amount, and then indicate that 'none of this distribution was RMD' are you receiving a message that you may be subject to penalty? You have until April of the year you turned 73 to take your RMD.

Generally, you enter your explanation of why you were late in the interview section and it transfers to Form 5329. You may not owe a penalty; the IRS usually waives the penalty anyway. It's the responsibility of the plan administrator to insure you get your RMD, so it may not be the fault of the taxpayer when this happens.

If you can explain what you mean by 'loops between the error' we'll try to help. What error are you referring to?

Here's more info on Missed RMD.

@Bowtone

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