@fanfare wrote:
@ender
Yes you followed the instructions in Form 5329.
Every year I send comment to IRS requesting to clarify the instructions.
However, according to the esteemed IRA experts on the forum
macuser_22 and dmertz, you are misreading it.
Do it their way because it seems to always work, and you don't have to send in any money.
I am not "misreading it". The screenshot I posted is how TurboTax does it and is exactally as the IRS 5329 instructions say to enter it:
Quote:
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.
The "amount of the shortfall you want waived" is (obviously) the amount of the RMD that was missed from line 52. When that amount is subtracted from itself, the result is zero, which goes on line 54. Line 55 is 50% of zero on line 54 that can only be zero on line 55.
What part of the IRS instructions do you not understand?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
