I received a letter from a custodian of an inherited IRA that they had an administrative error and neglected to disturb $519.51 for the tax years 2017-2021 ($519.51 is the total for all years).
I received the letter in November 2022 and immediately contacted them and requested they distribute that amount. The letter from the custodian says 2017-2021 to be distributed $2,373.70, Actual $1,854.19, Differential $519.51 (which I took in 2022 and is included in the total of the 1099-R).
I tried using TurboTax online to create form 5329 and listed an explanation. 5329 is showing up in my tax return (not submitted) but I think it is wrong. It is giving me an error stating “Form 5329-T: Waiver of tax should not exceed the minimum required distribution shortfall.” The original owner would have been 72, Turbo Tax is not recognizing this as an early distribution, and I cannot seem to edit the form.
Turbo Tax populated the 5329 to have Line 52 $2,374, Line 53 $1,854, Line 54 $0. Which is wrong I believe.
How do I edit the explanation that is in my tax return?
Should I delete their form 5329 and file by mail including my own 5329 or can I edit the 5329 form, it currently is locked for editing (font in blue)?
