Here is the information you need. If the RMD was received in 2023, then there is nothing to report in 2022. It will be reported in 2023 along with the RMD for 2022. You may be charged a penalty unless you can have the company correct the mistake and issue a 1099-R for 2022. If they actually made the payment in December, 2022, and you didn't receive it until January, 2022, then you should be getting a Form 1099-R.
Action Steps:
You must include form 5329 when you e-file. Unfortunately this can only be done using the "Forms" mode which is only available with TurboTax CD/Download if you do not have a 1099-R to file.
You can change to TurboTax Basic CD/Download if you choose.
Once this is completed here are the steps to add Form 5329 to your return.
- Enter the forms mode and click on open form (left). Type in 5329.
- Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return)
- Scroll down to Part IX line 52 and enter the RMD amount that should have been taken.
- On line 53 enter the amount of the RMD that was actually taken (probably zero if it was missed).
- Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.
You will not pay any penalty now until the IRS determines if it will grant the waver, then they will inform you if you owe the penalty.
Alternative for TurboTax Online: Print, complete and mail Form 5329 by April 18th since it is a signature form and can be mailed separately (click the link for form and instructions).
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