Required Minimum Distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year. Once you reach a certain age, the government requires you to start taking this money out so they can collect taxes on it. These rules apply to most employer sponsored retirement plans and traditional IRAs, but they do not apply to your Roth IRA.
Current RMD age requirements:
You must start RMDs at age 73 if you were born between 1951 and 1959.
You must start RMDs at age 75 if you were born in 1960 or later.
You were required to start at age 72 if you reached that age before the end of 2022.
If you missed your RMD, you should take the missing amount from your account as soon as you realize the error. Next, you need to file Form 5329 with your tax return to request a waiver of the penalty. The IRS may waive the penalty if you can show the mistake was due to a reasonable error and you have taken the steps to fix it.
To handle this in TurboTax Online, search for 1099-R and use the Jump to link to get to the retirement section. Even if you did not receive a 1099-R for the missed amount yet, you must go through this section to trigger the RMD questions. When you reach the screen asking Did you miss taking any RMDs?, select Yes and enter the amount you were supposed to take. TurboTax will then guide you through requesting a waiver and provide a space to enter your explanation for the IRS. If the software does not allow you to e-file Form 5329 without a current 1099-R, you must print and mail your return with the form and your written explanation attached.
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