topic I thought my financial advisor took care of scheduling my required minimum distributions for 2025. This was not the case. How do I report the mistake and correct it? in Retirement tax questions

I thought my financial advisor took care of scheduling my required minimum distributions for 2025. This was not the case. How do I report the mistake and correct it?

dennis_h85 — Thu, 05 Feb 2026 11:40:34 GMT

How do I correct a missed required minimum distribution?

Re: I thought my financial advisor took care of scheduling my required minimum distributions for ...

AmyC — Thu, 05 Feb 2026 23:57:35 GMT

Since you didn't have enough taken out:

you can request a waiver of the penalty due to the extenuating circumstances on Form 5329.
Withdraw the amount that was missed and get back on schedule.
The IRS usually grants the waiver under reasonable cause circumstances.

Follow these steps:

TY 2025 File form 5329 with your tax return.
- Line 52 will show the RMD you should have taken in 2025.
- Line 53 is the amount you actually took.
- Line 54, reasonable cause
- Line 55 zero for the penalty because you are asking for it to be waived. You relied on a professional you should be able to trust.
- See: Retirement plan and IRA required minimum distributions FAQs states: Q9. Can the penalty for not taking the full RMD be waived? Yes, the penalty may be waived if the account owner establishes that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. In order to qualify for this relief, you must file Form 5329 and attach a letter of explanation. See the Instructions to Form 5329
2026 - now- take the missed distribution immediately
- Withdraw the exact amount you should have taken for TY2025. Do not let them mark this as 2026 RMD. Tell them this is a separate distribution and you need a paper trail.
- When you file your 2026 return, you will get a 1099-R for the distribution and it will be included in your 2026 income.

Re: I thought my financial advisor took care of scheduling my required minimum distributions for ...

user17721460898 — Fri, 27 Feb 2026 14:01:58 GMT

I am in the same situation. I understand what I must do to fix the problem, but I don't know how to enter this information in TurboTax (TT) desktop edition. How do I get TT to generate Form 5329. I also need to complete Schedule 2 and make an entry on line 8. I can not find a way to do this while going through the TT prompts. Does anyone know how to do this?

Thanks - Dan

Re: I thought my financial advisor took care of scheduling my required minimum distributions for ...

TomK2023 — Fri, 27 Feb 2026 17:07:30 GMT

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):

Open or continue your return.
Under Wages & Income, scroll down to the Retirement Plans and Social Security section.
Select IRA, 401(k), 403(b) (Form 1099-R).
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.
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):

Open or continue your return.
Switch to Forms Mode (top right corner).
Open Form 5329.
Scroll down to Part IX (Additional Tax on Excess Accumulation in Qualified Retirement Plans).
On Line 52, enter the RMD amount that should have been taken.
On Line 53, enter $0 (since nothing was taken in 2025).
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.

@dennis_h85

@user17721460898