Missed RMD for IRA-BDA in 2024

[SteveJ57]

I searched but didn't find anything that matches my situation. I inherited a small IRA from my dad a few years ago, and have been taking RMD each year. In 2024, I had assumed that Fidelity was doing this automatically, but discovered in January 2025 that they had not. So I immediately took the 2024 required amount.

I looked into it at the time and found that I need to file a Form 5329 with my 2025 taxes to inform the IRS of this event. I was also told that I need to send a letter explaining the situation and begging for mercy to try to avoid penalties. 

I use TurboTax Desktop, so I'm assuming I have access to the 5329 there, but I have no idea how to fill it out.

• Will TurboTax guide me on this?
• Is it true that I can send a letter to try to avoid penalty (along with proof that I immediately took the 2024 RMD when the discrepancy was found)?
• If so, where do I put the letter and documentation?
• Can I still file electronically through TurboTax and somehow include these extra documents?

It's not a lot of money, at only about $2,500, but I want to make sure I do this correctly, and in such a way as to avoid penalty if possible.

Thanks very much for any help!

[ReneV4 · Accepted solution]

Yes. TurboTax will guide you when using the Step by Step Mode. However, since you have TurboTax Desktop, you are able to click on Open Form at the top left and type 5329 to generate the form automatically. You will be able to select Form 5329-T and then request your waiver directly on the form, by following these steps:

1. Go to Open Form at the top left corner of your TurboTax screen and type 5329
2. Select Form 5329-T
3. On Form 5329-T, scroll down to Line 52a and input the $2,500 that was your RMD
4. On Line 53a, input zero (0) for the amount of the RMD you took
5. Input the $2,500 in Box A found just below Line 53b
6. Click Explain just below the $2,500
7. Write: "I mistakenly assumed my financial institution was automating the RMD for my inherited IRA. Upon discovering the error in January 2025, I immediately withdrew the full 2024 RMD amount of $2,500. I have now set up an automatic withdrawal to ensure this does not happen again."

[SteveJ57]

@ReneV4, thank you. This is exactly what I needed. Thank you 1000x!