Required Minimum Distribution Reporting

Bruce B · ‎April 14, 2020

My wife inherited a 401K in 2018 and had a Reqiured Minimum Distribution she had to take in 2019. Due to an error of the Investment Bank, the distribution was not made until 1/2/2020. The Investment bank has provided me with a letter that states that they made an error and I will receive a 1099-R in 2020 for this distribution.

I believe that I need to file form 5329 as part of my 2019 tax return to inform the IRS of this error and pay taxes on the amount of the distribution. I have gone thru the IRA, 401K section of Turbo Tax and did not find a place to enter this information. Can someone please guide me thru how to accomplish this?

Thanks

MarilynG1 · ‎April 14, 2020

Since you didn't actually receive the distribution until 2020, add this to your 2020 tax return, using the 1099-R you get.

If RMD was required in 2019, you have until April 1, 2020 to take the distribution, so you won't need Form 5329.

Click this link for more info on Form 5329.

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dmertz · ‎April 14, 2020

The deadline to receive a 2019 RMD as beneficiary of an inherited IRA was December 31, 2019, not April 1, 2020.

Unfortunately, TurboTax makes it almost impossible for someone needing to file Form 5329 to request a waiver of the excess accumulation penalty when the individual has received no distributions that might be treatable as an RMD. Simplest is to prepare the Form 5329 manually and include this form and explanation with with your mailed tax return.

Bruce B · ‎April 17, 2020

Thanks.

Required Minimum Distribution Reporting

Retirement tax questions

Retirement tax questions

Retirement tax questions