topic My bank did not take out my RMD last year. I have since taken it out. How do I report this? in Retirement tax questions

My bank did not take out my RMD last year. I have since taken it out. How do I report this?

sbcarrizales — Fri, 27 Feb 2026 15:35:39 GMT

Re: My bank did not take out my RMD last year. I have since taken it out. How do I report this?

TomK2023 — Fri, 27 Feb 2026 16:31:18 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 Once discovered, the full RMD was withdrawn on [Date] to correct this shortfall.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.

Re: My bank did not take out my RMD last year. I have since taken it out. How do I report this?

rsreilly — Wed, 08 Apr 2026 18:49:42 GMT

Hi-

I am working in DIY Deluxe online. I have the same situation for missed RMD.

I added a 1099-R inputting $0 for the distribution, then indicated what my RMD amount was supposed to be.

I never got a dialog question asking if I missed a distribution. How do I get to Form 5329?

Thanks.

Re: My bank did not take out my RMD last year. I have since taken it out. How do I report this?

rsreilly — Wed, 08 Apr 2026 19:04:38 GMT

In addition: TurboTax did calculate and add in the 25% penalty as additional tax. So I really need the Form 5329!

Re: My bank did not take out my RMD last year. I have since taken it out. How do I report this?

RogerD1 — Fri, 10 Apr 2026 19:59:54 GMT

Follow these instructions to fill out a request for waiver of penalty on a missed RMD (not all of the screens may show up - the important ones to consider are all listed below):

Go to Federal on the left side menu, then Income, then click Wages and income summary
Scroll down to the Retirement Plans and Social Security section and click on it to expand it. Then click Revisit to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
Click Continue on the Who gave you a 1099-R? page
Click Continue on the Now, let's review your 1099-R provider's info page
On the Enter your 1099-R details from [custodian], double-check your entries, then click Continue
On the Do any of these situations apply to you? screen, check the box for None of these apply then click on Continue.
Enter the RMD that was supposed to be taken last year in the RMD due by 12/31/25 box, then click Continue.
Select None of this distribution applied to the December 31, 2025 RMD, then Continue
On the Tell us if you moved the money through a rollover or conversion select I didn't roll over or convert this money, then click Continue
Click Done on the Your 1099-R summary page
Answer questions about disaster distributions, and non-deductible contributions, and rollovers, etc.
On the screen Let's go over any required minimum distributions (RMD), click the pencil icon to edit your information
Click Yes to missing your RMD, then Continue
Select the type of account, then Continue
Since you already entered the RMD earlier, on the screen Tell us the total RMD for you other IRA accounts enter a zero.
Answer Yes to Did you take a corrective distribution for your IRA? - then Continue
Select Yes, I would like to fill out a waiver statement, then Continue
Enter the amount of the corrective RMD that you want the IRS to waive tax on, then Continue
You'll enter an explanation on the next page about the missed RMD and how you plan to not do this again in the future
Your taxes are now calculated based on getting a waiver of the 10% penalty for the late distribution.

Taking these steps will allow the RC code to appear on line 54a of Form 5329 along with the amount of the RMD that you are requesting a waiver of the 10% penalty on. It's uncommon for the IRS to reject a waiver request if you can show that the shortfall in the distribution was due to a reasonable error and that you are taking steps to remedy the shortfall. If the IRS has any questions or needs more information to approve your waiver, they will reach out to you directly.