A rmd was not taken out on an IRA due to a bank error for 2022. How do I proceed?

[sutorgeri]

I did paperwork transferring an IRA to
Discover and filled out paperwork to have the RMD taken out for 2022.  No 1099R form was mailed on my account.  I called Discover Bank and they said they
had the paperwork but the account wasn't funded when they received the
paperwork.  How do I proceed with taxes?

t

[JohnB5677]

You can proceed with your tax return.  Do not include anything for the RMD you didn't take.  It will be a doubled distribution for next year.  However, there is a 50% additional tax if you don't take prompt action on the RMD.

1. Immediately contact your plan provider to take the late RMD now. Make this a separate transaction.  Do not combine it with the RMD that is due for the current year. To have the 50% additional tax waived, the error must be promptly corrected.
2. File IRS Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. The additional tax does not have to be prepaid, but if the IRS determines that it is owed, there could be interest owed on the additional tax payment.
3. Attach a letter of explanation to Form 5329. The letter should include why the RMD was missed, the fact that it has now been taken, and describe the steps taken to ensure that future RMDs will be taken as required.

What happens if a person does not take a RMD by the required deadline?

[erodriguez109]

 I need to file a substitue 1099r

[ThomasM125]

Follow these steps to enter a substitute 1099-R form in TurboTax:

1. Choose the Federal option on your left menu bar
2. Choose Wages & Income
3. Choose the Retirement Plans and Social Security menu option 
4. Choose IRA, 401(k), Pension Plan Withdrawals(1099-R)
5. Choose the enter 1099-R option
6. Choose Change how I enter my form
7. Choose Type it in myself
8. Choose Financial institution or other provider (1099-R)
9. Enter in as much information as you can regarding the pension income 
10. Work through that section until you see Do any of these situations apply to you?
11. Choose I need to file a substitute 1099-R
12. Complete the information requested