Did you turn 70 1/2 in 2019 and take your first RMD before April 1, 2020? If so then this is a 2019 RMD that was taken before the due date and there is no penalty and no further action is necessary.
If you turned 70 1/2 prior to 2019 then you need to file a *2019* 5329 requesting a waiver of the penalty.
Download the 5329 form from the IRS website and fill it out as below. Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions.
The 2019 5329 must be attached to your printed and mailed amended 2019 tax return and cannot be e-filed.
[NOTE: You can only use this method if you are requesting a waver of the penalty and there is no taxable amount on the 5329 form line 55 that must be transferred to the 1040 form]
From 5329 instructions:
Quote:
"Waiver of tax. 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. "
Download blank 2019 5329 form here:
Form: http://www.irs.gov/pub/irs-pdf/f5329.pdf
Instructions: http://www.irs.gov/pub/irs-pdf/i5329.pdf
**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.**
