Thanks - this is very helpful!
I'm going through my TT 2023 return and adding the 5329-T form. Its pretty simple except for the last part regarding a Correction Window
line 52 - I haven't heard back from Fidelity yet on what the 2023 RMD is, but I can guesstimate for now an amount of about $2000
Line 53 amount actually taken is 0 . In the worksheet i enter the same $2000 to request the waiver. (There's also an EXPLAIN button to launch a statement box / editor where I can plead my case ).
line 54 is now zeroed out
line 55 is to calculate the tax, and it gets a little tricky here . Technically its 0 for now, because of the requested waiver. But what about the rate, in case the request is denied? It would be 25% or , as taken from instructions..
You may be eligible for a reduced tax rate of 10% if, during the correction period, you:
1. Receive a distribution of the amount that resulted in the excess accumulation from the plan for which the tax was imposed;
and
2. Submit a return reflecting the additional tax.
Correction window
The correction window is the period of time beginning on the date on which the additional tax is imposed on the distribution shortfall and ends on the earliest of the following dates:
• The date of mailing the deficiency notice with respect to the imposition of this tax;
or
• The date the tax is assessed;
or
• The last day of the second taxable year that begins after the end of the taxable year in which the additional tax is imposed.
~~~~~~~~~~~~
That's taking too many cups of coffee to process, so in simple terms:
If I receive the 2023 RMD by April 15 and then file with the 5329, do i qualify for the correction window and 10% rate?
Also It looks like TT includes the Explanation Statement with the form, so I should still be able e-file, correct? ( I've seen posts where it had to be manually done, but maybe that's old versions or different situations)
I guess 2021 and 2022 RMDs will have to be handled differently, but I'll put those questions off for now.
Thanks!
