Failure to Take Required Minimun Distribution in 2024

[SheilaJoyce4]

Client failed to take 2024 RMD from her IRA due to broker error.  The error was immediately corrected when realized. Broker files  2025 Form 1099-R for both 2024 RMD and 2025RMD?

I found information earlier in 2025 that said Form 5329 should be filed together with explanation with the 2024 Form 1040.  That was done.

Now, the source of the those instructions cannot be located.  Need something to validate the steps taken in filing 2024 Form 2040.

[dd4vols]

I just write a little explanation, reinforcing the amount missed, in the designated area.  Then I explain that the error was immediately corrected in 2025 when found. I also usually state that the taxpayer understands that there will be two RMDs taxable when filing the 2025 return. pretty simple.  

[Terry53029]

Here is an IRS statement showing what to do if missed RMD. Link: https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs

Q9. Can the penalty for not taking the full RMD be waived?

Yes, the penalty may be waived if the account owner establishes that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. In order to qualify for this relief, you must file Form 5329 and attach a letter of explanation. See the Instructions to Form 5329 PDF.

[Just-Lisa-Now-]

So the 5329 was filed in 2024, was it asking for a waiver of penalty for failure to take the RMD?  If so, youre done with 2024. 

Now 2025 will have 2 RMD amounts to get included on the 2025 return.