5329-S - Need 2 to be generated

[Texbox]

I'm doing my in-laws taxes and they forgot to take their RMDs for 2021.  They did it for 2020, so I have the 1099-R forms carried over into the current version of TurboTax.

For some reason, I can only get a 5329-S generated for my mother-in-law.  It acts like it's going to do one later for my father-in-law, but it doesn't.  Goes through the review and says the return is ready to be filed.

A couple of tidbits:

1. They're filing Married Filing Jointly

2.  I tried "fooling" TurboTax and entered $0 for amount of RMD taken.  It didn't work.

3. I've read that each person requires a 5329-S.  I was able generate 2 Explanation Statements for the single 5329-S, but I don't think that's correct, IRS-wise.

Any help would surely be appreciated!!

[BillM223]

"I've read that each person requires a 5329-S."

If two 5329 forms are needed, TurboTax generates the 5329-T for the primary taxpayer and a 5329-S for the spouse. There will not be two 5329-S forms.

When you entered these fake 1099-Rs, did you make sure that you told TurboTax that one belonged to the primary taxpayer and the other to the spouse?

I take it you are trying to generate two 5239s so that you can explain why no RMD was taken in 2021?

[Texbox]

Thanks for the reply!  Yes, no RMDs were taken in 2021, so I'm asking for waivers.

TurboTax is generating a 5329-S for the Spouse and nothing for the Primary, even though that's the first one that I complete.  

No 5329-T is generated either.  Maybe I need to start all over fresh???

[BillM223]

Are you using the Online software or the CD/desktop software? Please see this thread where several experts discuss how to do what you want to do. The first suggestion is to take the missed RMD immediately so that you can mention that in the waiver request. Now that the IRS is not eager to assess the 50% penalty if you provide any sort of halfway decent explanation (Heaven knows that the last couple of years have provide a sackful of reasons).

Then - if your administrator is quick - you can maybe get the 1099-R online (not wait for the mail) and enter the info into TurboTax. I mention this because I don't think you can generate a stand-alone 5329 in the Online product without a 1099-R (but read that thread closely). And I don't think that a 1099-R with zeros will do what you want, either.

So read the thread and see if you have any questions.

[Texbox]

Thanks for your reply!

Here's my situation.

1. I'm using TurboTax Deluxe on a Windows 10 PC.  I have updated the program every time it asks.

2. My in-laws did not receive 1099-Rs for last year since my mother-in-law forgot to take the required RMDs.

3. Once I realized the error, we immediately called the Credit Union and had them deduct the correct amount from the IRAs.  I have crafted a mea culpa statement for the 5329 Explanation Statement to "beg" for a waiver.

4. This is a simple return - 2 - SSA-1099s, 1 - 1099R (pension), 4 - 1099 INTs and no deductions - using the Standard Deduction.

5. I've created 5 versions of the return trying to get it to generate a 5329-T, but it only generates a 5329-S for my Mother-in-law.

6. I've gone into the Forms View and only see the 5329-S and associated Explanation Stm.  

7. I'm wondering if this is a bug in the software since it creates a 5329-S without a 5329-T?  From what you are saying, the T is the primary document so why would it even generate the S?

8. Worse case, I guess I'll either figure out how to manually generate a 5329-T in TurboTax, or Print the return and download the T from the IRS.

Thanks for any light that you can shine on the issue!!

[BillM223]

"5. I've created 5 versions of the return trying to get it to generate a 5329-T, but it only generates a 5329-S for my Mother-in-law."

How are you doing this? Are you created an ersatz 1099-R for each parent to simulate the real 1099-R that they will be getting for the RMD distribution? And if you did, did you make sure that each 1099-R was assigned to the correct taxpayer (it's easy to accidentally assign both forms to the same taxpayer)?

"I'm wondering if this is a bug in the software since it creates a 5329-S without a 5329-T? "

No, this is not a bug. My tests make the 5329-T just fine.

"From what you are saying, the T is the primary document so why would it even generate the S?"

If you entered a 1099-R for each taxpayer and indicated that they were short on the RMD, then two 5329s would be created, a -T and a -S.