Form 5329 for RMD penalty

[pinkgianttcr]

where do I get this form?

[macuser_22]

Do you have a 2016 1099-R to file?

[pinkgianttcr]

yes

[a4q4d76]

no

[glorenz]

h1b visa

[macuser_22 · Accepted solution]

First, if you have not taken the missed RMD, take it ASAP so you can tell the IRS in the explanation statement that it has been taken.

You will need to file a 5329 form and request a waiver of the penalty that would only be denied it you intentionally ignored the RMD or failed to take in prior to filing the 5329.

If you do have a 2016 1099-R to report then the RMD question in the interview will go to the form 5329 waiver interview if you say that the 2016 RMD was not taken.

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From 5329 instructions:
Quote:
"Waiver of tax.   The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows.
1. Complete lines 52 and 53 as instructed.
2. Enter “RC” and the amount you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54.
3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55.
  The IRS will review the information you provide and decide whether to grant your request for a waiver. "

[stegold60]

Unclear on what is the "waiver interview," for form 5329. Can this be filed electronically with return for 2017 on TurboTax?

[macuser_22]

@stegold60 - IF you have a 2017 1099-R to file then when the RMD question comes up and you answer that you did not take all of the RMD, TurboTax will fill out a 5329 requesting the waiver that will be e-filed with the tax return.  Unfortunately if you do not have a 1099-R to file then you cannot get to that interview and the only option then is to download the from from the IRS, manual fill it out, and attache that to a mailed tax return.

(If you use the CD/download version then a 5329 can be filled out in the "forms mode" that can be e-filed).

[ake6562]

No RMD was required in 2020.

[VolvoGirl]

This thread was from 2019 or maybe even years earlier.  When they changed to the new forum all the old posts came over with June 2019 dates but maybe even older and not apply to 2020.

[macuser_22]

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@ake6562 wrote:

No RMD was required in 2020.

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This question and thread is about a *2016* RMD.   The 6/7/19 date on the message was the date the post was migrated forum the old forum.   This question is 5 years old.     It has nothing to do with 2020.

[treshombre]

Missed taking RMDs in 2017-2019. Took the RMDs in 2020 and received three 1099-R forms, one for each year's RMD. Those 1099-R forms have been entered in Turbotax. 

It is my understanding that I will need three 5329 forms as well, one for each year's RMD. Is that correct?

If so, will I need to print and mail?

Thanks