Yes, you will need to file Form 5329 and request a waiver of the penalty if you have reasonable cause. Please see Relief for Reasonable Cause for additional information.
You will report the RMD for 2023 on your 2024 tax return when you receive your 2024 Form 1099-R. Please make sure you will take the RMD for 2024 by the end of December 2024.
If you do have a Form 1099-R entered follow these steps to file Form 5329:
- Click on "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Click "Continue" and enter the information from your 1099-R
- On the "Your 1099-R Entries" screen click "Continue"
- Continue until "Tell us more about the retirement plan distribution" screen and select "I did not receive all the RMD for 2023" and click "Continue"
- On the "Required Minimum Distribution" screen enter the RMD amount and actual amount received
- Enter information on the "Let's see if we can reduce your tax bill" if you want to apply for a waiver.
If you do not have a Form 1099-R to file this can only be done using the "forms" mode which is only available with the TurboTax Desktop software:
- 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 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 2023 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 2023 Form 5329 must be attached to your printed and mailed 2023 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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