topic Re: 2025 RMD in Retirement tax questions

2025 RMD

skj — Tue, 10 Feb 2026 03:09:17 GMT

My 2025 RMD was short one month. I made the missing withdrawal in January 2026. Form 5329-T is asking to make a selection to indicate whether corrective distribution was taken during the correction window. Do I check "corrected-yes"? Will I still pay a penalty?

Re: 2025 RMD

ReneV4 — Tue, 10 Feb 2026 17:27:12 GMT

Yes and yes. Check the "Yes, I took out the entire remaining amount during the correction window". And, although there will be a penalty, you may request a waiver by following the steps below.

Go to your Form 1099-R information in the Wages & Income section
Continue through answering the questions, until you reach, "Let's go over any required minimum distributions (RMD)"
Select Yes for, "Let's check if you missed any required distributions"
Continue, then enter the total RMD that was due by December 31, 2025 when you reach, "Tell us the total RMD for your other IRA accounts"
Select Yes when you reach, "Did you take a corrective distribution for your IRA?", then Continue
Select Yes when you're asked, "Do you want to request a waiver to reduce the penalty?", then Continue
Enter the RMD amount that you are requesting a waiver on (amount of your missed payment), then Continue
Write your explanation in the next section, then Continue
You will then reach, "Nice job finishing your waiver", Continue

Re: 2025 RMD

skj — Fri, 20 Feb 2026 23:03:44 GMT

I filled out the form requesting a waiver of penalty taxes. The additional tax assessed is included on the federal tax form. How will I be informed if the penalty is waived and an adjustment is made to taxes due? I am due a refund for 2025l

Re: 2025 RMD

MarilynG1 — Wed, 25 Feb 2026 22:02:50 GMT

The IRS rarely denies waivers if you have already withdrawn the missed RMD amount. You must report that you have "corrected" the missed RMD by taking the distribution, and state that it was due to reasonable error.

Check Form 5329: Review the form in FORMS mode in TurboTax. If your explanation for the missed RMD was accepted, the penalty on Form 5329, Line 55 should show as 0.

If you still see a penalty after fixing the issue, re-answer the questions regarding the RMD in the, "Let's go over any required minimum distributions (RMD)" section, as this refreshes the calculation.

@skj

Re: 2025 RMD

angela829 — Wed, 04 Mar 2026 15:14:29 GMT

Hi, please help I have the same situation which I corrected in March 2026. Filing form 5329 from TT but I do not see Form 5329 asking to make a selection to indicate whether corrective distribution was taken during the correction window? Please advise where I can see that question on Form 5329. Appreciate so much.

Re: 2025 RMD

angela829 — Wed, 04 Mar 2026 16:33:36 GMT

Great! Thanks so much. The line 55 currently shows -0- balance on Form 5329 and it also shows my waiver statement.

Moreover, please advise how to properly report the 2026 for this missing 2025 1099R once preparing 2026 tax return since the 2026 1099R will show the total of 2 RMDs: one for 2025 and another for 2026.

Appreciate so much.

Re: 2025 RMD

angela829 — Wed, 04 Mar 2026 16:39:08 GMT

Yes it did fix the problem. Thank you so much.

Please advise what I need to do once preparing 2026 tax when I will receive the 1099 R for the total of 2 RMDs: one for 2025 and another for 2026.

Appreciate so much.

Re: 2025 RMD

angela829 — Wed, 04 Mar 2026 16:46:52 GMT

Thanks so much for the info. I did follow your instructions and TT corrects the Form 5329 which indicates -0- on line 55.

Also, I like to know how to properly report this 1099R in 2026 since the 2026 1099R will show the total distributions in one amount: one for 2025 and another for 2026.

Appreciate.

Re: 2025 RMD

DianeW777 — Thu, 05 Mar 2026 00:54:36 GMT

In 2026, the codes used will allow the 2025 amount to be tax free since you did include it in your 2025 return even though the payment of the required minimum distribution (RMD) was paid late. It will likely be Code P. See the list of codes for 2025 which will be updated for 2026.

What do all the codes in Box 7, Form 1099-R mean?

@angela829

Re: 2025 RMD

angela829 — Thu, 05 Mar 2026 11:40:35 GMT

Thanks for your prompt response. However, I was told by the institution it is likely they will code 7 on the 2026 1099 R?

What should I do if I receive 1099 Rin 2026 with code 7 for the total of 2 RMD (2025 and 2026) from the institution?

Appreciate so much.

Re: 2025 RMD

RobertB4444 — Thu, 05 Mar 2026 23:36:03 GMT

You will need to edit your 1099-R if you receive it and it does not match what is necessary.

If you receive a 1099-R in 2027 for the 2026 tax year that includes amounts that you have already reported on your 2025 tax return you will need to remove that amount from the 1099-R. You already reported it.

You can do that by just entering the correct code as though that P appeared in box 7. The TurboTax software has space for two codes in box 7. You'll enter that P even if it isn't there and the system will prompt you to enter the amount that was reported on the prior year's tax return. That way you aren't taxed on it next year.

Re: 2025 RMD

angela829 — Fri, 06 Mar 2026 11:50:36 GMT

Hello Robert:

Thanks for your informative response. However, I am still a bit confused. Although I am filing form 5329 for a waiver on missing 2025 RMD (meaning to waive the penalty at 10% of the missing 2025 RMD on 2025 return) , this missing 2025 RMD is not included in the 2025 total 1099R (meaning the missing 2025 RMD is not included in 2025 income). Should I manually adjust the missing 2025 RMD on the 2025 return on1099R section though I did not have that 1099R in 2025?

Consequently, on the 2026 return, I can manually adjust the 2025 missing RMD to code P and enter code 7 for the 2026 RMD which will be taken in 2026?

Appreciate your elaboration so much.

Re: 2025 RMD

RobertB4444 — Tue, 10 Mar 2026 16:47:08 GMT

yes, you should manually adjust the 1099-R so that it shows on the 2025 return. Then, when you receive the actual 1099-R next year, you can manually adjust it to show that you entered the amount on the prior year's return. That way you are only taxes on it once and correctly.

Good luck with the penalty waiver!

Re: 2025 RMD

angela829 — Tue, 10 Mar 2026 18:40:17 GMT

Hi Robert:

Thanks for your prompt response.

I am a bit confused on the manual reporting adjustment for 1099R of missing 2025 RMD. In 2025 return, I did not take the RMD by 12/31/2025 and naturally, there was no 1099R for that 2025 RMD. Thus, I can't report that 2025 RMD on my 2025 return. In 2026 retutn, I will report both: the missing 2025 RMD taken in 3/2026 and the 2026 RMD will be taken in 12/31/2026 since the institution will issue one 1099R for both RMDs in one total under code 7 - Normal Distribution. Therefore, I will pay tax on the total RMDs in 2026, meaning only one not twice? Do I misunderstand from what you tried to explain on that manual reporting adjustment? Please elaborate.

Appreciate so much.

Re: 2025 RMD

DianeW777 — Tue, 10 Mar 2026 19:02:58 GMT

It's your choice. And it seems you do misunderstand your options.

You can report the 1099-R on your 2025 tax return by using a substitute form (Form 4852). TurboTax will ask you if you need to create one when you enter your 1099-R; OR
You can wait and report it all on your 2026 tax return which may create a higher tax liability and penalty.

You must take the required minimum distribution (RMD) as soon as possible and then file form 5329 and a letter of penalty forgiveness with TurboTax Online or TurboTax Desktop. You will need to file a 5329 form and request a waiver of the penalty which is already part of your tax return. (The waiver would only be denied if there is no reasonable explanation and the missed RMD was not taken at all.)

Steps to include the RMD that should have been taken in 2025 (if you choose). Thanks in part to our tax expert @ReneV4.

Go to your Form 1099-R information in the Wages & Income section
Continue through adding the form and answering the questions, be sure to use Code 8 in box 7
1. You reach a screen 'Do any of these situations apply to you?' Select 'I need to file a substitute 1099-R' until you reach, 'Let's go over any required minimum distributions (RMD)'
Select Yes for, 'Let's check if you missed any required distributions'
Continue, then enter the total RMD that was due by December 31, 2025 when you reach, 'Tell us the total RMD for your other IRA accounts'
Select Yes when you reach, 'Did you take a corrective distribution for your IRA?', then Continue
Select Yes when you're asked, 'Do you want to request a waiver to reduce the penalty?', then Continue
Enter the RMD amount that you are requesting a waiver on (amount of your missed payment), then Continue
Write your explanation in the next section, then Continue
You will then reach, 'Nice job finishing your waiver', Continue

Note: After the first RMD, all subsequent years' RMDs are due by December 31 of each year. Keep a paper trail for your tax files and Form 5329 will be generated with your tax return to include your explanation and waiver request.

@angela829

Re: 2025 RMD

angela829 — Wed, 11 Mar 2026 19:08:50 GMT

Hi Dianne:

Thanks for your response,

I have a question regarding your input. Usually, I always took the RMD and instructed a brokerage to pay federal tax and state tax without any retaining amount with me. This time due to this missing action, I am owing federal tax and state tax without adding that missing RMD in the 2025 tax return. Now, if I add that missing RMD to the 2025 return, the amount I owe will double up of what I am currently owing at this point. Does it make sense?

Appreciate your help.

Re: 2025 RMD

angela829 — Wed, 11 Mar 2026 19:39:39 GMT

@DianeW777

Sorry for the latest message to you. Please disregard it. I found the input error.

Thanks again.