Assuming you did not receive a 1099-R, please see TurboTax Expert DanaB27 instructions below.
When you reach the age of 72, or age 73 if you reach age 72 after December 31, 2022, you must start taking required minimum distributions, or RMDs, from your Traditional IRA or 401(k).
The amount you must withdraw is based on the total value of all of your tax-deferred retirement accounts divided by your life expectancy, which you can calculate according to an IRS worksheet.
The deadline for taking your required minimum distribution is usually December 31 of each year. If you don't withdraw the minimum amount from your plan, the penalty for years prior to 2023 is 50% of the amount you don't take on time; and beginning in 2023, the penalty amount is 25% of the amount you don't take on time.
You may be able to get the penalty waived if you missed taking your RMD due to an illness, mental incapacity, or bank error.
For more information, please read TurboTax article: What is Form 5329: Additional Taxes on Qualified Retirement Plans?
TurboTax DanaB27's original post here.
"Please follow these steps in "forms" mode, which is only available with the TurboTax Desktop software, if you do not have a Form 1099-R to file:
- Enter the forms mode and click on "Open Form" and type "5329".
- Scroll down to Part IX line 52 and enter the RMD amount that should have been taken. On line 53 enter the amount of the RMD that was actually taken (probably zero if it was missed).
- Then in the box right (labeled A) under line 53 "Waiver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount).
- Click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waiver.
If using the TurboTax Online version and have no [2024] Form 1099-R to file, you will have to prepare the 5329 manually.
Download Form 5329 from the IRS website and fill it out the same as above. Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions. The [2024] Form 5329 must be attached to your printed and mailed [2024] tax return and cannot be e-filed.
Please be aware that you can only use this method if you are requesting a waiver of the penalty and there is no taxable amount on Form 5329 form line 55 that must be transferred to Schedule 2 line 8."
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