Can I file Form 5329 with my return using Turbo Tax Deluxe? I believe I need to file it because I missed taking an RMD for 2023 in connection with an inherited IRA.

It depends, if you have a Form 1099-R to trigger the RMD questions. Without Form 1099-R you can't get to the questions about missed RMD to get Form 5329 attached to your tax return.

 

If you haven't taken the RMD then take it as soon as possible. Please see Relief for Reasonable Cause for additional information.

 

 

 

If using the TurboTax Online version and have no 2023 Form 1099-R to file, you will have to prepare the 5329 manually.

 

Download Form 5329 from the IRS website and fill it out the same as above. Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions.

 

The 2023 Form 5329 must be attached to your printed and mailed 2023 tax return and cannot be e-filed.

 

Please be aware that you can only use this method if you are requesting a waiver of the penalty and there is no taxable amount on Form 5329 form line 55 that must be transferred to Schedule 2 line 8.

 

 

 

You can use the "forms" mode if you decide to use the TurboTax Desktop software if you do not have a Form 1099-R to file:

 

1. Enter the forms mode and click on "Open Form" and type "5329".
2. 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).
3. Then in the box right under line 53 "Waiver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). 
4. Click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waiver.

I have follow-up question.  Given the advice you provided above.  Does this mean I can eFile form 5329 along with my 1040 forms?  Or do I still have print out 5329 and send it separately to IRS?  Another question, can I file form 5329 now before April 15th 2024, and then take the missing RMD for 2023 in May 2024?

Thanks.

Yes, you can e-file Form 5329 with your tax return if you are using TurboTax Desktop and using the steps in form mode.

 

If you are applying for a waiver then you should take the RMD as soon as possible.

 

@anla0015