@Craig55 wrote:
Thank you, Opus 17, for your detailed reply. Here are the answers to your questions.
Based on your answers, I don't see any reason that you would not have a form 5329. You may want to contact customer support and have them do a screen share, they can also look at the program internal worksheets.
I will note that once you turn 65, you can withdraw funds for non-medical reasons and only pay income tax and not the 20% penalty, so one way to resolve the excess and avoid the continual 6% penalty will be be withdraw the $4050 excess and not say that it was used for medical expenses. But even if you did that, you should have a form 5329 that starts with a carryover balance.
@rjs
@dmertz
Do you see anything that I missed that would explain the absence of form 5329 for this taxpayer?
