It depends. If 2016 is your first
year for which RMD was required, the deadline for taking 2016 RMD is April
1, 2017. As it is not late yet, no special reporting is required. You'll receive 1099-R next year. Be sure to take the RMD for 2017.
IF 2016 is not your first year for RMD, you
may request a waiver of penalty,
and the IRS often allows it if you can show that RMD was taken due to a
reasonable error an actually took steps to fix the error. The data entry
in TurboTax to request a waiver depends on the following:
a. If you
have no Form 1099-R - you would
have to manually prepare Form
5329 according
to its instructions
and request the waiver of penalty and to
enter the explanation. To have access to forms, you must
use a cd/download version of Turbo Tax. You may consider printing the
form on the IRS website, do it by hand and attach it to your printed and mailed tax return.
b. If you
have received form 1099-R for any IRA distribution, please enter the form information and go through the questions. You
will be asked if you have met RMD requirements, what is the required amount and
actual amount received. If zero or partial amount was taken, Turbo Tax will ask to type in explanation where
you can show the reasonable error and what steps were taken to fix it.
IRS often allows a waiver of the penalty if reasonable steps are taken
(see pic).
