How can I access form 5329 in turbotax? I failed t...
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steve-cole1503
New Member

How can I access form 5329 in turbotax? I failed to take the 2019 RMD on an inherited IRA. I've taken now and need to complete from 5329 but cannot find it in turbotax.

 
7 Replies
MayaD
Expert Alumni

How can I access form 5329 in turbotax? I failed to take the 2019 RMD on an inherited IRA. I've taken now and need to complete from 5329 but cannot find it in turbotax.

TurboTax will generate form 5329 when you enter your 1099-R and answer the questions regarding the RMD.. 

To check if the form is prepared on TurboTax online:

  1. Select Tax Tools then Tools from the left menu.
  2. Select Delete a form. 
  3. Scroll down and look for form 5329.

 

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barrylyons
New Member

How can I access form 5329 in turbotax? I failed to take the 2019 RMD on an inherited IRA. I've taken now and need to complete from 5329 but cannot find it in turbotax.

I'm in the same situation as the O.P. I appreciate Maya's attempt to respond, but the problem is that I did not take the RMD, therefore I did not receive a 1099-R. I don't see any way in that Income section to have TurboTax generate a 5329 without having a 1099-R. 

 

Maya or someone else, can you address this situation?

BillM223
Employee Tax Expert

How can I access form 5329 in turbotax? I failed to take the 2019 RMD on an inherited IRA. I've taken now and need to complete from 5329 but cannot find it in turbotax.

If you filed using the TurboTax Online product, there is no automatic way to handle this.

 

You will have to manually create a form 5329 (get one from the IRS website).

 

Go 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).

Then type on a separate piece of paper that you are requesting a waiver on the RMD penalty that would have been on line 55 on the 5329, giving our reason.

 

Print your return, add the 5329 and the request for a waiver, and mail it to the IRS.

You will not pay any penalty now until the IRS determines if it will grant the waver, then they will inform you if you owe the penalty.

 

 

If you are using TurboTax CD/download software, you can do the following:

 

Enter the forms mode and click on open form.  Type in 5329.  Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return).

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).

Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount).   Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.

You will not pay any penalty now until the IRS determines if it will grant the waver, then they will inform you if you owe the penalty.

 

 

@barrylyons

 

 

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barrylyons
New Member

How can I access form 5329 in turbotax? I failed to take the 2019 RMD on an inherited IRA. I've taken now and need to complete from 5329 but cannot find it in turbotax.

Thank you, Bill. Meanwhile, I think I found a different work-around, but please tell me if this will lead to other problems. I said I didn't receive a 1099-R but wanted to enter my own info, entered $10 as a distribution received, answered "Yes" to "Did you inherit this IRA from TIAA?" (a strange question - I inherited it from a deceased family member and transferred it last year from Fidelity to TIAA). This then generated a 5329. Then I went back and corrected the distribution received to $0 and made sure the correct info was on the 5329. 

 

All looks good to me now, but do you see any issues with doing it this way?

barrylyons
New Member

How can I access form 5329 in turbotax? I failed to take the 2019 RMD on an inherited IRA. I've taken now and need to complete from 5329 but cannot find it in turbotax.

P.S. I'm using the download TurboTax.

macuser_22
Level 15

How can I access form 5329 in turbotax? I failed to take the 2019 RMD on an inherited IRA. I've taken now and need to complete from 5329 but cannot find it in turbotax.

No that is not correct.  

 

The method given above by BILL is for a 5329 for the taxpayer or spouse for their missed RMD but cannot be used for an inherited IRA missed RMD.

 

TurboTax can ONLY prepare a 5329-T (for taxpayer) or 5329-S (spouse).    The 5329 for an inherited IRA MUST be in the name of the deceased with you as benificuary and cannot be in the name of the taxpayer or spouse.

 

TurboTax does not support a 5329 for that.  Even in the forms mode, TurboTax will not allow entering  the deceased name and FBO (For benefit of) the person that inherited it as required.

 

The 2019 5329 for an inherited IRA can only be completed manually on paper and attached to a mailed 2019 tax return.

 

Download blank 2019 5329 form here:
Form: http://www.irs.gov/pub/irs-pdf/f5329.pdf
Instructions: http://www.irs.gov/pub/irs-pdf/i5329.pdf

 

**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.**
barrylyons
New Member

How can I access form 5329 in turbotax? I failed to take the 2019 RMD on an inherited IRA. I've taken now and need to complete from 5329 but cannot find it in turbotax.

Thank you for the clarification!!! Important for me to know, though disappointing that I won't be able to file electronically.

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