How to complete Form 5329 lines 52a-53b for missed RMD correction?

The Form 5329 can definitely be confusing with the recent changes. I'll break this down for you: Line 52a is where you enter the RMD required from your traditional IRAs, including any inherited traditional IRAs. So yes, if your total RMD requirement was $13,500, that's what goes on line 52a. Line 52b is for RMDs from other types of retirement accounts like 401(k)s, 403(b)s, or 457 plans - not for non-qualified plans. Since you only mentioned inherited IRAs and Roth IRAs, this line would likely be zero unless you have other employer plans with RMD requirements. For line 53a, you should enter the total distributions you actually took from your traditional IRAs during the tax year - only what you withdrew last year, not including the correction you made in January this year. Line 53b would be distributions from those other types of accounts (401k, etc.). Again, likely zero based on what you've shared. The correction you made in January falls under the IRS's correction program, and you'll need to file Form 5329 with a statement attached explaining that you made the correction.

After struggling with a similar situation, I tried taxr.ai (https://taxr.ai) and it made figuring out Form 5329 so much easier. I uploaded my tax documents and got clear instructions specifically for my missed RMD situation. The site analyzed my distribution history and told me exactly what to enter on each line of the updated form, plus generated the waiver statement I needed to include with my return.

Just wanted to follow up on this thread. I decided to try taxr.ai after seeing it mentioned here and it was exactly what I needed. My situation was slightly different (I missed RMDs from both an inherited IRA and a 403b), but the system correctly identified how to allocate everything between lines 52a and 52b, and also explained how to report my January correction. The waiver statement template was accepted by the IRS without any issues. Saved me hours of frustration and possibly an expensive penalty!

If you need to talk to someone at the IRS about this (which might be a good idea given the complexity), I highly recommend using Claimyr (https://claimyr.com) to get through to an agent. I was on hold for HOURS trying to get clarification about my own RMD situation before I discovered this service. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I got through to an actual IRS agent in about 20 minutes who walked me through exactly how to complete Form 5329 in my situation.

I have to admit I was wrong about Claimyr. After posting my skeptical comment, I decided to try it since I was getting nowhere with my 5329 questions. Got connected to an IRS retirement specialist in about 30 minutes who confirmed exactly how to handle the correction window situation. The agent explained that I needed to complete Form 5329 showing the shortfall but could request a waiver by writing "RC" next to line 55 with a statement explaining the timely correction. Saved me from potentially paying a 25% penalty on money I did eventually withdraw. Still annoyed that the IRS forms and instructions aren't clearer about this!

Here's another wrinkle to consider - if you make the correction in a new tax year but within the correction window, are you supposed to also include that amount in your current year's distributions? Or does it only count toward fixing last year's shortfall?

Has anyone actually been hit with the penalty for missing an RMD? It went up from 50% to 25% recently, but I'm curious if the IRS frequently enforces it or typically waives it if you make the correction.

Thanks for this detailed thread - it's been really helpful! I'm in a similar situation but with one additional complication. I missed my RMD from an inherited traditional IRA last year, but I also have a regular traditional IRA that I did take the correct RMD from. When filling out Form 5329, do I need to include the distributions from both IRAs on line 53a, or only report the one where I had the shortfall? And should the required amount on line 52a be the combined RMD requirement from both accounts, or just the amount I was supposed to take from the inherited IRA where I missed it? I've been going in circles trying to figure out if I report everything together or handle each account separately on the form.

I've been through this exact situation and want to add a few important points that might help others: First, make sure you understand which correction window applies to your situation. The IRS has a self-correction program that allows you to fix missed RMDs by April 15th of the year following the missed distribution without penalty. There's also a longer correction window under the Employee Plans Compliance Resolution System (EPCRS), but that's more complex. One thing I learned the hard way - if you have multiple retirement accounts, you need to be careful about how you calculate your total RMD. For traditional IRAs, you can aggregate the RMD amounts and take the total from any one or combination of your IRAs. But inherited IRAs must be calculated and distributed separately - you can't use a distribution from a regular IRA to satisfy an inherited IRA's RMD requirement. Also, keep detailed records of everything. When I filed my Form 5329 with the correction statement, I included copies of all distribution statements, calculations showing my required amounts, and documentation of the corrective distribution. The IRS accepted it without any follow-up questions. The key is being thorough and transparent about what happened and how you corrected it. Don't try to hide the mistake - the correction program exists specifically for these situations.

I just went through this exact situation with my inherited Roth IRA and wanted to share what I learned. One thing that really tripped me up initially was understanding that even inherited Roth IRAs have RMD requirements - I mistakenly thought only traditional IRAs had them. For the form completion, everything everyone said above is spot on. But I wanted to add that if you're dealing with an inherited Roth IRA specifically, make sure you're calculating the RMD correctly using the beneficiary's life expectancy table, not the original account owner's. My custodian provided a worksheet, but I double-checked their math and found they had made an error. Also, when you write your correction statement, be specific about which type of account you're correcting. I wrote something like "Failed to take required minimum distribution of $2,850 from inherited Roth IRA by December 31, 2024. Corrective distribution of $2,850 taken on January 15, 2025, within the self-correction window. Requesting penalty waiver under reasonable cause provisions." The whole process was less scary than I thought it would be once I understood the steps. The key is just being methodical about the documentation and not panicking about the mistake.

This entire thread has been incredibly helpful - thank you all for sharing your experiences! I'm dealing with a similar missed RMD situation, but I have one specific question that I haven't seen addressed yet. When you make the corrective distribution in January (within the correction window), does the timing matter for tax purposes? For example, if I took my corrective distribution on January 5th versus January 30th, does that affect anything on Form 5329 or the penalty waiver request? Also, I've seen some conflicting information about whether you need to pay estimated taxes on the corrective distribution in the current year or if it's treated differently since it's technically correcting the prior year's shortfall. Has anyone dealt with the estimated tax implications of these corrective distributions? I'm trying to get all my ducks in a row before filing and want to make sure I'm not missing any important details about timing or tax treatment.

This thread has been incredibly informative! As someone who just discovered I missed part of my RMD from an inherited traditional IRA, I'm feeling much more confident about handling the correction process. One thing I wanted to add that might help others - when I called my IRA custodian to discuss taking the corrective distribution, they were able to process it the same day and even helped me calculate the exact shortfall amount. They mentioned that they see these correction situations fairly regularly, especially in January, so don't be embarrassed to reach out to them for help with the calculations. I'm also planning to set up automatic RMD distributions for next year to avoid this situation entirely. Most custodians offer this service where they'll automatically distribute your RMD amount in December based on the required calculation. It takes the guesswork and potential for human error out of the equation. Thanks again to everyone who shared their experiences - it's made what seemed like an overwhelming tax problem much more manageable!

This has been such a comprehensive and helpful discussion! I'm currently dealing with a missed RMD situation myself and have found all the shared experiences invaluable. One additional resource I wanted to mention that helped me understand the correction process better is IRS Publication 590-B, specifically the section on penalties and corrections. It provides detailed examples of how to calculate RMDs for different types of accounts and explains the correction procedures step by step. Also, for anyone who's nervous about making the corrective distribution, I found it helpful to call my custodian first and explain the situation. They walked me through exactly how much I needed to withdraw and helped me understand the tax implications before I actually took the distribution. Most of the major custodians (Fidelity, Vanguard, Schwab, etc.) have specialized retirement services representatives who are very familiar with RMD corrections. The key takeaway I've gotten from this thread is that the IRS correction program exists specifically for these situations, and as long as you're proactive about fixing the mistake and thorough with your documentation, the penalty waiver process is pretty straightforward. Thanks to everyone who shared their real-world experiences - it's made what seemed like a complex tax problem much less intimidating!

As someone who recently went through a similar RMD correction situation, I wanted to share a few additional tips that might be helpful: First, when you're preparing your Form 5329, double-check that you're using the correct year's form. The IRS updated the form for 2023 and later years with those new "a" and "b" line designations you mentioned, so make sure you're not accidentally using an older version. Second, if you're unsure about any of the calculations, consider reaching out to the IRS Taxpayer Advocate Service. They can provide guidance on complex situations like this at no cost, and they're generally more helpful than the regular customer service line for technical questions about forms and penalties. Finally, keep a copy of everything you file, including your correction statement. Even though the penalty waiver should be processed automatically, there's always a chance the IRS might follow up with questions months later, and having all your documentation organized will make any future correspondence much easier to handle. The good news is that once you get through this correction process, you'll have a much better understanding of RMD requirements going forward. Many people learn about these rules the hard way, but at least the IRS provides a reasonable path to fix honest mistakes.