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kmeyerwyo
New Member

I did not take a required RMD in 2022, since rectified

Did not take RMD on required fund in 2022
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2 Replies
LindaS5247
Expert Alumni

I did not take a required RMD in 2022, since rectified

If this is your first year that you are required to take an RMD, then you have until April 01, 2023 to take it.

 

You stated in your question that it is "since rectified".  Does this mean you took it, but after December 31?  It is hard to give a specific answer without more details.
 

But in general, failure to withdraw a required minimum distribution (RMD) from an IRA, 401(k) or similar account by the deadline can result in a 50% additional tax assessed on the amount of the RMD that was not taken. However, the IRS will waive the 50% additional tax for good cause.

 

An IRA owner may request a waiver of the penalty by writing a letter to the IRS explaining the reason the RMD was not taken by the deadline, and the fact that he/she has remedied the “shortfall” by removing the RMD, though it was done after the deadline.

 

You will need to file a 5329 form and request a waiver of the penalty. (The waiver would only be denied if there is no reasonable explanation and the missed RMD was not taken at all.)

To do this on TurboTax Desktop/CD version:

  1. Go to Forms,
  2. Click on Open Forms and
  3. Type in Form 5329 and choose  (T) for Taxpayer or (S) for spouse, and the Form will come up. 
  4. Scroll down to line 52 and enter your RMD amount.

 

For TurboTax Online, 

  1. Follow the prompts in the Form 1099-R section.
  2. If you do not have any Forms 1099-R to file, you can enter a "dummy" Form 1099-R to get this sequence of questions to trigger.
  3. When it asks if you were required to take a RMD for 2022, select that you were required to but did not take it as required.
  4. Enter the amount of the RMD and how much of it that you took. ($0 in your case)
  5. You will then be taken to a screen that asks you why you didn't take your RMD and what steps you took to remedy it.  Enter that information.  And if you took the RMD already but it was late, state that as well. 
  6. This will be entered into Form 5329.
  7. You can check that a Form 5329 has been generated by going to tax tools and then tools on the left side of your screen, Click on Tax Summary and Preview my Return. If your return is not finished, and you want to check if it is there you can click on delete a Form, and you will see that Form 5329 is there.  (But do not delete it.)
  8. If you created a "dummy" Form 1099-R in order to trigger the RMD questions, make sure to delete it.

 

Click here for information on deleting your Form 1099-R in TurboTax.

 

Click here for additional information on Form 5329.

 

[Edited 02/26/23|3:19 pm PST] @kmeyerwyo @fanfare 

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I did not take a required RMD in 2022, since rectified

@LindaS5247 

 

"To do this :

  1. Type in 5329."

Is this a new feature?

in prior years, the forum reports that this is not supported without a 1099-R.

 

 

by the way, type in where?

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