Retirement tax questions

i doubt very much IRS is going to correct your return if your 5329 shows a penalty but that is because of a miscalculation by tax software.

Another solution not mentioned is to file with a penalty but request a waiver of the penalty.

A waiver request must be supported by a "reasonable" explanation.

Is it reasonable to explain that your return calls for a penalty but the software doesn't work right?

Perhaps you would have to explain further.

When you request a waiver, you don't pay the penalty up front.

 

@dan_in_MI