What should i do since i failed to make the minimum required withdrawal on one of our ira's

[hooksj-windstrea]

how do i speak to a person

[Critter-3]

Did you take out enough from all the IRAs combined to cover the total RMDs from all the accounts?   Or did you only take the RMD from each individual account and missed one ? 

[Hal_Al]

"How should I take my RMDs if I have multiple accounts? If you have more than one IRA, you must calculate the RMD for each IRA separately each year. However, you may aggregate your RMD amounts for all your IRAs and withdraw the total from one IRA or a portion from each of your IRAs".

Reference: https://www.irs.gov/retirement-plans/rmd-comparison-chart-iras-vs-defined-contribution-plans#:~:text....

[Opus 17]

First: A reminder that an RMD is not a special transaction.  It is just the amount you must withdraw at some time during the year.  If you don't withdraw during the year, you may have to withdraw at the end of December.

Also, your required minimum withdrawal is calculated from all your traditional IRA balances, and can be taken from any account.

For example, suppose you have 3 IRAs at bank 1, bank 2 and bank 3.   The combined RMD was $10,000.  You withdrew $1000 per month from bank 1 all year for expenses.  Since your total withdrawal ($12,000) is more than the required combined minimum, you don't have to withdraw any money from bank 2 or bank 3. 

If you indeed failed to withdraw the minimum combined amount before December 31, take the withdrawal as soon as you can.  You will report the failed RMD on your tax return and ask for a waiver of the penalty. Waivers are usually granted if you have good-sounding excuse and you withdrew the money as soon as you realized your mistake.  Also remember that money withdrawn in 2023 to satisfy the 2022 RMD does not also satisfy the 2023 RMD, which you still need to take at some point. 

Someone else will have to provide the technical details of how to get Turbotax to report the penalty and request the waiver.

[rjs]

Is 2022 the first year that you were required to make minimum withdrawals? Did you just turn 72 in 2022? If so, you have until April 1, 2023 (not April 15) to take the 2022 RMD. If you take it by April 1 there will be no penalty, but you still have to take your 2023 RMD before the end of the year.

If you turned 72 in 2021 or earlier, the distribution is actually late. In that case, you have to file Form 5329 with your 2022 tax return. Form 5329 calculates the 50% penalty for not taking the RMD on time, but you can request a waiver of the penalty. You will almost certainly get the waiver if taking the RMD late "was due to reasonable error and you are taking reasonable steps to remedy the shortfall." Taking the RMD now is a reasonable step to remedy the error. To request a waiver you include Form 5329 and an explanation statement with your 2022 tax return.

In TurboTax, after you enter the 1099-Rs for the distributions that you did take, and proceed through the interview, you will come to a screen that asks you if you received all the RMDs that you were required to take for 2022. If you answer that you did not, it will lead you through requesting the waiver and entering an explanation. In the explanation, in addition to a brief explanation of why it was late, be sure to say that you took the distribution in January 2023.

TurboTax will include Form 5329 and the explanation in your tax return. There will be no penalty included on your tax return because the assumption is that the waiver will be granted.