My bank did not take out my RMD last year. I have since taken it out. How do I report this?

[TomK2023 · Accepted solution]

You will need to file IRS Form 5329 (Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts)  to report the error and request a penalty waiver (for a missed Required Minimum Distribution (RMD)).

Step 2... Since you received the money in 2026, you will report that income on the tax return you file next year (in 2027), based on the 1099-R you will receive next year.

Step 1... You must file Form 5329 on your 2025 tax return to tell the IRS you missed the deadline but have since corrected it.
 

Enter Missed Required Minimum Distribution (RMD):

1. Open or continue your return.
2. Under Wages & Income, scroll down to the Retirement Plans and Social Security section.
3. Select IRA, 401(k), 403(b) (Form 1099-R).
4. Proceed through the interview screens (as if you have a 1099-R)... until you eventually see "Did you miss a required distribution from any retirement accounts?", and Select "Yes", and enter the amount you were supposed to take.
5. Select "Yes" when asked if you "want to request a waiver" and provide an explanation.

For example: My bank did not process the RMD distribution by Dec 31, 2025. Once discovered, the full RMD was withdrawn on [Date] to correct this shortfall.
 

On TurboTax Desktop (Forms Mode):

1. Open or continue your return.
2. Switch to Forms Mode (top right corner).
3. Open Form 5329.
4. Scroll down to Part IX (Additional Tax on Excess Accumulation in Qualified Retirement Plans).
5. On Line 52, enter the RMD amount that should have been taken.
6. On Line 53, enter $0 (since nothing was taken in 2025).
7. On Line 54, enter the amount you want waived (the full amount) and click the Explanation box to provide your reason (on the Tax Smart Worksheet).

Do not pay the penalty yet, if you are requesting a waiver.  The program will show $0 penalty on the final line of Form 5329. The IRS may grant a waiver for first time mistakes or bank errors.

If 2025 was the very first year you were required to take an RMD (you turned 73 in 2025), you actually have until April 1, 2026, to take it.