RMD withdraw

[leysotor]

I made a math error and the total RMD withdraws for 2024 were $1000 less than the actual requirement. How do I report this small shortfall?  I saw an article that a waiver of the penalty can be requested/form 5329 need to be included with the return.

[rjs · Accepted solution]

First of all, was 2024 the first year that you were required to take an RMD? (Did you turn 73 in 2024?) If so, there isn't really a shortfall. You have until April 1, 2025 (not April 15) to take your first RMD. If this is the case, just make sure you take the remaining amount before April 1.

If you turned 73 in 2023 or earlier, you actually do have a shortfall. Take the remaining amount now, as soon as you can, and file Form 5329 with your 2024 tax return to request a waiver of the penalty. You will almost certainly get the waiver.

After you enter all your 1099-Rs in TurboTax and proceed through the interview, you will come to a screen that asks you if you received all the RMD that you were required to take for 2024. 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 rest of the distribution in February.

You still have to take your 2025 RMD in 2025. Your 1099-R for 2025 will include both the 2025 RMD and the additional 2024 RMD that you took in February 2025, so you will be paying tax on the additional amount on your 2025 tax return.