Missed RMD

[Joehamptons]

Hello I erroneously missed my RMD in 2021.  I will will fill out form 5329 for missed Rmd and submit after I file the 2021 taxes with turbo tax.  Do I send check for estimated tax on rmd (20% historically) ? I don’t see where my broker vanguard offers to hold back tax.  I will fill out the reasonable cause details and send note so I don’t have to pay 50% penalty. I would submit with my taxes but I believe this would not allow me to electronically file.  I have read that I should do this as a separate transaction in the mail. Please help! 
thanks

joe 

[MaryK4]

You may want to contact Vanguard regarding the tax withholding- most companies will do so but do not make it well known.  If not, you should have Estimated payment vouchers with your TurboTax return.  You can also make the payments online at Payments | Internal Revenue Service.

You will need to complete your tax return (indicate that you paid the RMD since you are requesting the waiver) then print the return so you can mail.  You will need Form 5329 for the waiver. 

The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows.

1. Complete lines 52 and 53 as instructed.

2. Enter “RC” and the amount of the shortfall you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54.

3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55.

The IRS will review the information you provide and decide whether to grant your request for a waiver. If your request is not granted, the IRS will notify you regarding any additional tax you may owe on the shortfall.