what is the RMD correction window

The RMD correction window is the period during which you can correct a missed Required Minimum Distribution (RMD) to potentially reduce or eliminate the associated penalty. Generally, under the Secure Act 2.0 you have until the end of the second tax year following the year the RMD was missed to correct the error. For example, if you missed an RMD in 2023, the correction deadline is December 31, 2025.

 

 

Did you not take the full RMD from your accounts?  Is Turbo Tax telling you that you didn't take enough RMD and giving you a penalty?  That's been happening a lot this year because they change the way to enter 1099R forms.   Did you get more than 1 1099R?  

 

When it asks about the RMD it is only asking for that one 1099R. You need to enter the amount in box 1 on that single 1099R for the RMD, not the total RMD for all. Even if they would add up to more.

If the RMD was taking during the year, does that mean you are considered have taken the RMD before the end of the correction window?

If you took the RMD for 2024 in 2024 then you took the RMD in time and do not have to worry about the correction window.

 

Pub 590-B states:

 

The “correction window” is the period of time beginning on the date on which the additional tax is imposed on the distribution shortfall and ends on the earliest of the following dates:

 

• The date of mailing the deficiency notice with respect to the imposition of this tax, or
• The date the tax is assessed, or
• The last day of the second taxable year that begins after the date of the taxable year in which the additional tax is imposed.

@M1WV 

@M1WV   The 1099R RMD questions have been fixed on Feb 20, 2025!  If you are using the Desktop program be sure to update your program.  Go back though and revisit your 1099R entries.

 

You need to go back through the 1099R entries and revisit the answers.  The questions have changed so your prior answers won’t be right especially if you answered them with a work around to make them come out right.

Not working for me on online version. I started from scratch today 2/23. I input the exact RMD amount I received and the exact RMD the govt mandates. It keeps my keyed amount in dollars and cents. It rounds up the amount the govt mandates and seems to think I underpaid by pennies. I'll go back and try rekeying rounding all amounts up to nearest $. 

Yes, please enter only full dollar amount. Also, if you took all of your required RMD you can indicate at the end that end of the interview that you took all of your RMD:

 

1. Click on the "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Review your entries and continue through the questions
4.  On the "Review your 1099-R info" screen click "Continue"
5. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD"

 

@tmhaas