The exception to this deadline, is if this year you are making your very first RMD. To be exact- and in this case it really matters- the deadline for this first withdrawal is April 1 of the year after you reach 70½.
The only way to avoid the penalty is to now take the missed RMD and prepare Form 5329 to request a waiver of the penalty based on reasonable cause and having made the distribution of the missed RMD. What you do with the money is irrelevant to avoid the penalty.
This form looks long and scary, but it’s used to report and correct a lot of different things. All you have to do is zero in on the section that deals with forgetting to take an RMD from an IRA.
It’s handy to have a copy of the instructions for Form 5329. On page 7 you will find the heading “Required Distributions.” Further in this section is a sub-heading entitled “Waiver of Tax.” The information here will guide you to the exact lines you need to fill out.
Note that when submitting Form 5329, you also need to attach a brief explanation as to why you failed to take the necessary withdrawal. Let the IRS know you have already taken steps to correct this by requesting that the custodian send you your RMD. (Assuming this is true.) It might also be a good idea to have a tax professional look over your paperwork to ensure you have covered all the details.
You can get form 5329 from TurboTax. However, you may have to print and mail your tax return...please read below for details...the action required depends on your situation:
You can search for the form and the program will take you to it and you can start filling it out.
1. Login to your account
2. On the top right corner of your computer screen you will see My Account
3. Click Tools
4. Click Topic Search, type in 'form 5329', hit your enter button
5. Follow the prompts
