How do I enter 2021 missed RMD using the online version of TurboTax. I understand I will also need to complete form 5329. Is it available using the online version?

[ColeenD3]

You can't enter a missed RMD for 2021. It will have to be made in 2022.

A missed 2021 RMD taken in 2022 is reported on the 2022 tax return along with the 2022 RMD.  Nothing goes on a 2021 tax return because there was no 2016 distribution.

Download the 5329 form 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.

You will need to file a 5329 form and request a waiver of the penalty.  (The waiver would only be denied if there is no reasonable explanation and the missed RMD was not taken at all.)

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. 

[SN2674]

I missed the 2021 RMD and had the disribution taken as soon as I realized it had been missed in March 2023 - I've compiled a letter of explanation and have Form 5329. 2 questions:

For Line 55 - would this be 0 or 50% of the missed RMD? Line 54 will have a 0, with the RC RMD Amount written in parentheses on the line to the left.  

What address should the Form and Letter be mailed to? There are certain addresses for different Forms, but none list 5329.  Instructions I've read don't give an actual address. 

thanks!

[DanaB27]

Line 55 would be $0 if you have $0 on line 54. Please see Relief for Reasonable Cause for additional information.

You will send it to the same place you would mail your Form 1040. You can look up the address on the IRS website. Select your State and it will provide you with the address.

Be sure to include your address on page 1 of the form and your signature and the date on page 2 of the form. 

@SN2674