If my missed RMD was from a reasonable error and I've taken steps to correct it, how do I fill out a waiver letter?

[AmyC · Accepted solution]

The waiver letter is just an explanation statement. Your return may have multiple statements. You can check in your forms to see if you have the statement that goes with the Form 5329.

If you didn't have enough taken out:

• you can request a waiver of the penalty due to the extenuating circumstances on Form 5329.
• Withdraw the amount that was missed and get back on schedule.
• The IRS usually grants the waiver under such circumstances.

I have another post for TTD  with step by step entry with screen shots to ask for waiver

Reference:

Consequence for failing to take required minimum distributions

If you do not take any distributions, or if the distributions are not large enough, you may have to pay a 25% excise tax on the amount not distributed as required.

• To report the excise tax, you may have to file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
• See the Form 5329 instructions PDF for additional information about this tax.

[fanfare]

Explain to the IRS why you missed the RMD, what action you took that they should waive your penalty. Include dates and amounts. This is required if you request a waiver.

If you did not act yet, indicate your plans for timely action OR delay filing until shortfall is distributed.

@edward-tefft 

[edward-tefft]

Thank you AmyC!

I took a quick read and believe that I will be able to address the issue, if not from your reply, then from a link within your reply.  Due to an issue at the investment firm, my account was frozen until early 2024.  So, I was late with last year's RMD and made up for it by Jan. 17 of this year.  Since I did not receive a 1099-R for the late payment, I saw instructions how to work within TurboTax to indicate that I did not receive that particular 1099-R, and I can go from there to address that.

Best regards, and many thanks for your prompt reply!

Ed 

[edward-tefft]

Thank you, fanfare Level 15!

My question could have been formulated better.  I took the corrective action on January 17, 2024 for a delay in paying the RMD due on 12/31/2023.  I was wondering whether I needed to file another explanation to receive credit, but I saw that another post indicated that I could go into TurboTax and indicate that I am missing a form 1099-R and then generate one to cover the make-up payment because my financial institution would only give me a 1099-R for this year's scheduled RMD.

Best regards,

Ed