If 2016
is your first year for which RMD
was required, the deadline for taking 2016 RMD is April 1, 2017. As it is not late yet, no special reporting is
required. You'll receive 1099-R next year and you will report it next year. Be sure to take the RMD for 2017.
IF 2016 is not
your first year for RMD, you may request a waiver of penalty, and the IRS often allows it if you can show
that RMD was taken due to a reasonable error an actually took steps to fix the
error. The data entry in TurboTax to request a waiver depends on the
following:
a. If you have
no Form 1099-R - you
would have to manually prepare Form
5329 according
to its instructions and request the waiver of penalty and to enter
the explanation. To have access to forms, you must use a cd/download
version of Turbo Tax. You may consider printing the form on the IRS
website, do it by hand and attach it to your printed and mailed tax
return.
b. If you
have received form 1099-R for any IRA distribution, please enter the form information and go
through the questions. You will be asked if you have met RMD
requirements, what is the required amount and actual amount received. If zero,
Turbo Tax will ask to type in explanation where you can show the reasonable
error and what steps were taken to fix it. IRS often allows a waiver of
the penalty if reasonable steps are taken (see pic).
