topic Missed RMD in Get your taxes done using TurboTax

Missed RMD

Sue RW — Mon, 25 Nov 2024 22:55:24 GMT

For 2023 taxes: After filing we discovered an RMD from an annuity had not been included in the total calculations. We took that portion in March (along with the RMD for 2024 - I assume both will be reported as an RMD for 2024). How do I handle this to pay what is owed and not mess up 2024 taxes?

Re: Missed RMD

rjs — Tue, 26 Nov 2024 01:28:14 GMT

You are correct that both distributions will be reported in 2024. In January you will receive a Form 1099-R showing the total amount that you received in 2024, for both RMDs. Just enter the 1099-R as you normally would. It will not "mess up" your 2024 tax, but you will pay more tax because you are reporting double the amount of income from the annuity. There is nothing you can do about that.

You probably should have reported the missed RMD on Form 5329 in your 2023 tax return to avoid a penalty for not taking the RMD in 2023. You can file a 2023 Form 5329 now, by itself, not attached to any tax return. You do not have to amend your 2023 tax return.

2023 Form 5329

2023 Instructions for Form 5329

@dmertz - Any further comment or corrections?

Re: Missed RMD

dmertz — Wed, 27 Nov 2024 00:28:40 GMT

The filing of the 2023 From 5329 should include an explanation along with a request to waive the excess-accumulation penalty as described in the instructions for Form 5329 Part IX, Line 54.

Re: Missed RMD

Sue RW — Sun, 01 Dec 2024 17:41:22 GMT

Very helpful to give the specific Part IX - Parts I - XIII confused me on the first couple of readings, leading to frustration and putting it all aside for a while. Thanks.