If you received a Required Minimum Distribution (RMD) from an IRA or retirement plan, the distribution should be reported to you on Form 1099-R. You'll need to enter the Form 1099-R information in your tax return so the distribution is included in your income, if taxable.
To enter your Form 1099-R in our program:
- Go to Federal
- Select Income
- Choose 1099-R, RRB, SSA
- Select Add or Edit a 1099-R
- Enter the information exactly as it appears on your Form 1099-R
What Is a Required Minimum Distribution (RMD)?
An RMD is the minimum amount you must withdraw each year from certain retirement accounts after reaching the applicable age required by the IRS.
For tax year 2026:
- Most IRA owners must begin taking RMDs at age 73.
- If you were born in 1960 or later, your RMD age is generally 75.
- RMD rules apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, and most employer-sponsored retirement plans.
- Roth IRAs do not require RMDs during the original owner's lifetime.
You can always withdraw more than the required amount, but not less.
Is My RMD Taxable?
Generally, yes. Your RMD is included in your taxable income except for:
- Amounts that were previously taxed (your basis)
- Qualified tax-free distributions from designated Roth accounts
- Other nontaxable portions reported on Form 1099-R
If part of your distribution is nontaxable, that amount generally won't be included in Box 2a of Form 1099-R.
What If I Didn't Take My Full RMD on Time?
If you fail to withdraw the full RMD by the deadline, the IRS may assess an excise tax on the amount that wasn't withdrawn.
Under current IRS rules:
- The penalty is generally 25% of the missed RMD amount.
- The penalty may be reduced to 10% if the shortfall is corrected during the IRS correction window and other requirements are met.
You generally report a missed RMD on Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
To access Form 5329 in our program:
- Go to Federal
- Select Other Taxes
- Choose Additional Taxes on Qualified Plans and Other Accounts
- Complete the RMD section of Form 5329
How Do I Complete Form 5329 for a Missed RMD?
Refer to the IRS instructions for Form 5329 when completing the form. In general, you will:
- Enter your required RMD amount for the tax year.
- Enter the amount of the RMD that was actually withdrawn by the deadline.
- The program will calculate any applicable excise tax based on the difference between the required amount and the amount withdrawn.
Requesting a Penalty Waiver
The IRS may waive the penalty if the missed RMD was due to a reasonable error and you're taking steps to correct it.
To request a waiver:
- Indicate that you're requesting a waiver in the Form 5329 section.
- Enter the amount of the missed RMD for which you're requesting relief.
- Provide an explanation describing:
- Why the RMD was missed, and
- What steps you've taken to correct the issue.
The IRS will review your explanation and determine whether all or part of the penalty can be waived.
Need More Information?
The IRS provides additional guidance and frequently asked questions about RMDs, including calculation methods, deadlines, beneficiary rules, and correction procedures. Additional information and Frequently Asked Questions about RMD can be found on the IRS website.
Key Things to Remember
- Report your RMD using the information from Form 1099-R.
- Most retirement account owners must begin taking RMDs at age 73, while some younger taxpayers won't begin until age 75.
- Missed RMDs are generally reported on Form 5329.
- The penalty for missed RMDs is generally 25%, with a possible reduction to 10% if corrected promptly.
- Roth IRAs do not require lifetime RMDs for the original account owner.