Form 5329 for RMD penalty

11 replies
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where do I get this form?

TurboTax Premier Online

Alumni - Champ

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. "

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

macuser_22

Alumni - Champ

Do you have a 2016 1099-R to file?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

P

pinkgianttcrAuthor

Level 2

yes

A

a4q4d76

Level 2

no

GloriaL

Alumni - Intuit

h1b visa

macuser_22

Answer

Alumni - Champ

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.

=========================
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. "

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

S

stegold60

Level 2

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

T

treshombre

Level 2

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