I can't figure out how to to add a Form 5329 to my filing. The AI help is worse than useless, as it proposes using parts of the UI that don't exist.

[paulrbrown]

This is to handle a missed RMD.

[paulrbrown]

From working with Inuit support, it sounds like this is an unsupported/unimplemented feature in TurboTax online at any feature level.  So, what I have to do is:

1. Switch to paper filing instead of e-filing.
2. Download the 1040 and schedules.
3. Manually transcribe the information from the Turbo Tax 1040 plus schedule 2 onto a 1040 plus schedule 2, updating the items that need to be updated.
4. Complete the 5329 as needed.
5. Submit the new 1040, schedule 2, and 5329 along with the other schedules.

What a mess.

[DoninGA]

Click on Federal on the left side of the online program screen

Click on Other Tax Situations

Under Additional Tax Payments

On Extra tax on early retirement withdrawals, click the start button

[paulrbrown]

That's getting close.  I probably need to go back to some earlier step in the UI, as it says "No Early Retirement Withdrawals".  (This was the loop we were stuck in when I was working with customer support — there is no 1099R because there was no RMD, which is the whole problem.)

[DoninGA]

@paulrbrown if you did not have a retirement account distribution in 2025 there would not be a Form 1099-R issued.  Without a withdrawal you cannot complete the form 5329.

[paulrbrown]

Not quite.  Section IX of 5329, which is then connected to line 8 on 1040 schedule 2 is relevant when there is no 1099R because of a missed RMD.  This is a product design miss in TurboTax that sucked up hours of my time to find and quantify and now hours more to deal with manually transcribing data onto new forms, updating totals, and filing on paper.

[DoninGA]

@paulrbrown Maybe our expert on retirement account issues will be able to help.

@dmertz Are you available to help on this issue?

[dmertz]

TurboTax makes it nearly impossible to create a Form 5329 Part IX under these circumstances, particularly with the online version.  My suggestion is to complete Form 5329 outside of TurboTax, then mail the form and, if you are not requesting a waiver, your penalty payment.

https://www.irs.gov/pub/irs-pdf/f5329.pdf

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