How do i file a form 5329?

[ReneeM7122]

No, to find out information about prior year tax returns, you wouldn't send in a 5329 for each of those years with this year's tax return.  The IRS won't request an amended form 1040X for prior years based off of this year's return.

If you filed your prior year tax returns with TurboTax, you can access the information to see why there were no excess contributions taken.   It's possible it wasn't required, but without seeing your returns we could not make that determination.

If you did not file with TurboTax, you can always request an IRS transcript if you need to.  That information can be found on the IRS website, at this link.

And if you do need to file an amended tax return, you can do so with TurboTax.

Here is information on the IRS website and on TurboTax.

@sdoran

[janaka1943]

I had a RMD automatic withdrawal plan from IRA account in investment firm. So they took out money and send it to my bank. After 10 days I noticed the deposit in my bank and asked the investment firm to retrieve the money from bank to put into my IRA account. I had paid 10% federal tax also. I received a 1099-R form. When I talked to them today, they said there is another form I can file form 5329 called in-direct Rollover to indicate the taxes. 

I don't see that form in Turbotax Premium. What do I do?

[janaka1943]

Turbotax did not generate that form. Is there anybody who can help?

[macuser_22]

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@janaka1943 wrote:

Turbotax did not generate that form. Is there anybody who can help?

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Why do you think you need that form?

What code is in box 7 on your 1099-R?

What is in box 2a?

[macuser_22]

It you rolled it all  back (including any amount withheld for tax) then there will be nothing that requires a 5329.

[janaka1943]

Is there anyway I can talk to the Turbotax person ? 

[LiquidDrift]

I contributed too much for tax year 2019 in 2020, and rolled the excess into my 2020 contribution, BUT it's still over the limit because my earnings decreased in 2020.  Can I now remove the excess for the 2020 contribution without penalty?  Or do I have to file a 5329?  

TurboTax is asking me to re-enter the 2020 contribution amount minus the excess after I withdrawal it.  That's fine, but how will it then know to file a 5329?

[macuser_22]

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@LiquidDrift wrote:

I contributed too much for tax year 2019 in 2020, and rolled the excess into my 2020 contribution, BUT it's still over the limit because my earnings decreased in 2020.  Can I now remove the excess for the 2020 contribution without penalty?  Or do I have to file a 5329?  

TurboTax is asking me to re-enter the 2020 contribution amount minus the excess after I withdrawal it.  That's fine, but how will it then know to file a 5329?

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If you ask the IRA custodian for a "return of contribution plus earnings" before April 15, 2021, then just remove the contribution from TurboTax.    Nothing needs to be reported until you receive the 1099-R next January for the returned contribution.    No 5329 is necessary.

[stailor]

What if I can't get a return prior to tax day?  Can I then use form 5329?

[macuser_22]

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@stailor wrote:

What if I can't get a return prior to tax day?  Can I then use form 5329?

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If it is a return of a 2020 contribution the  if you file yiur tax return on or before May 17, OR file for an extension by midnight May 17, then you have until Oct 15 to get the return of contribution.

[jgla]

will turbotax allow an explanation with the form

[macuser_22]

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@jgla wrote:

will turbotax allow an explanation with the form

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Depends on the reason for the 5329.  Only a missed RMD needs an explanation.

This thread is 2 years old and the topic has changed several times.

[vangroves]

I am requesting a waiver of this tax and IRS instructions say to attach a letter of explanation along with tax form 5329. How can I do this using Turbo Tax?

[HopeS]

Form 5329 is the tax form used to calculate possible IRS penalties from the following situations:

• Early distributions from a tax-favored account
• Excess contributions to a tax-favored account
• Failing to take the required minimum distributions

Form 5329 applies to each individual that might owe a penalty, so for married couples filing jointly, each spouse must complete their own form.

To fill out form 5329:

1. Open your return and click on Search at the top of your screen.
2. In the Search box, type form 5329 and click on the magnifying glass icon on the right.
3. Click on the link Jump to form 5329.
4. TurboTax will take you to a section where you can fill out form 5329, which will be included in your tax return.

If you are using TurboTax Desktop you can add this Form by using Form mode.

To switch to Forms Mode, open your return and select the Forms icon in the top-right corner of the screen (or choose Forms from the View menu at the top). The 1040 Worksheet will display, and all the forms in your return will be listed. Simply select a form to open it.

Please see the filing instruction for Form 5329 from the IRS

https://www.irs.gov/pub/irs-pdf/i5329.pdf

@vangroves

[vasantraga65]

Vanguard failed to withdraw RMD from my wifes IRA account. They are saying file form 5329. I am in the middle of preparing our tax return in Turbotax. I want form 5329 included in the tax return Where do I find it in the tax return for completion.