I can't get the online version to prompt me about a missed RMD, and I can't add it under other tax situations. How do I get to form 5329?

[cmmg75]

I looked at answers from last year on how to get to the form but the questions to trigger the form are not being asked. The AI says to pick an option under other tax situations but I have no idea which question will lead me to form 5329.

[MonikaK1]

You can enter the missed RMD on Form 5329, Box A under line 53 available in the TurboTax Desktop forms mode.

Please follow these steps in "forms" mode, which is only available with the TurboTax Desktop software, if you do not have a Form 1099-R to file:

1. Enter the forms mode and click on "Open Form" and type "5329".
2. 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).
3. Then in the box right (labeled A) under line 53 "Waiver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). 
4. Click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waiver.

If using the TurboTax Online version and have no 2024 Form 1099-R to file, then you will have to prepare the 5329 manually. Here is a link to where it appears on irs.gov.

Download Form 5329 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. The 2023 Form 5329 must be attached to your printed and mailed 2023 tax return and cannot be e-filed.

Please see this tax tips article for more information.

See this Community Best Answer for further discussion of this issue.

[cmmg75]

I can use quick zoom to get the the explanation statement, but I can't get the paragraph section to work. When I click the first line, it highlights it in pink and then when I type I can see the text in red. But as soon as I click anywhere else, the text disappears. I tried starting with the second line and it turns blue and the text types in blue, but again the text disappears. I did a print preview directly after typing without clicking anywhere else and the top is filled out but the paragraph section is blank. How do I make this section work?

[AmyC]

It sounds like you are in the desktop version now. Follow these steps:

Don't start at the top. No zooming needed

1. Identify if this is taxpayer or spouse to get the correct 5329-T or 5329-S
2. Open the correct form
3. Scroll down to part IX and enter numbers directly onto the form.
4.  line 52 - enter total RMD you should have taken from all accounts
5. line 53 - enter total RMD actually taken
6. Waiver of Tax Smart Worksheet 
7. line a - enter the missed RMD due to reasonable error fully distributed within the correction window -enter $ amount 
8. Line 54 a now shows 0 penalty, RC $xx
9. If you scroll up, you should see the correct name and social at the top. 
10. Immediately arrange for a distribution of the funds and tell them that this is missed RMD and you need a separate paper trail as it is not part of 2026 RMD. You will get the paperwork and pay taxes on it in 2026. The IRS knows your end of year accounts balances and expects to see this distribution. You must be diligent that you get the correct RMD this year. The corporation could easily think you got the RMD, despite what you tell them.

Reference: Different colors of data indicate input origination What’s the meaning of all the different colors in forms mode? 

[user17705970298]

AmyC,  Your instruction steps produces a Explanation Statement in Forms Mode, but attempting to produce a printed copy of all tax forms for mailing does NOT include the Waiver Explanation Statement.  It also does NOT correctly enter "RC" and the amount of the shortfall that you want to have the IRS waive in parentheses on the dotted line next to line(s) 54a and/or 54b per the 2025 IRS Instructions for Form 5329.  Currently, the only solution seems to be to create a text file with the necessary Waiver Explanation, include it with all of the forms for mailing and manually add the (RC <amount>) entry to Form 5329 with a pen.

[br15284]

I have the same issue.  Turbotax Desktop will not allow me to enter text into the explanation lines.  Same behavior as described above.  This seems like a bug.

[user17712071032]

UPDATE: Thank you Turbotax for fixing the software to include explanation of my missed RMD & your calculations.  I was able to file electronically and my tax due, did not include the penalty.

I was able to give a five line explanation for my late RMD, save it & have it appear in my filing.

Though, I was thankful that I had decided to use the desktop version & follow the other instructions given.

Thank you community!

--------------------

Turbotax, will you please fix this soon!?!

I have wasted most of my Sunday trying to make your software work the way it should!

It sounds like you are telling me I need to mail in my return.  I have a 1099-R for 1 distribution & one that wasn't completed (no 1099-R)

[DawnC]

Fill out the explanation statement from the interview.   At the end of the 1099-R interview, TurboTax will ask you about missed RMDs and you can complete the explanation statement from there.  Where do I enter a 1099-R?

If you didn't take your RMD, TurboTax will fill out Form 5329 for you and attach it to your tax return.  To do this, follow the steps below:

1. Sign in to your return - Continue in Wages & Income.
2. Search for 1099-R and use the Jump to link and answer the questions about disaster distributions.
3. On the Did You Miss a Required Distribution From Any Retirement Accounts? page, choose the type of account you have.
4. Continue through the questions about your RMD
5. We can help you file a waiver if you have a reasonable cause. 

[user17717068100]

In the upper right corner of the app desktop, find and click on "Forms." A list of forms will appear. Find Form 5329--T. Click on it. The form will open. I had to type in my address, but my name was there already. Scroll down to part IX. If you click on the YES box under Corrected?, your tax liability will be reduced so that you only have to pay 10% of the RMD shortfall. CAUTION: There is a worksheet visible which asks for the amount that you corrected. In my case, I corrected the entire shortfall so I typed that number in the box. The app seems to think that is all that is required. HOWEVER, after going all the way to the end, at the point where I could push the "Submit" button, when I pushed the "Submit" button, the program said, "Not so fast, dummy!" (or something like that). It then took me to the Worksheet that asks for an Explanation of the corrected amount. At that point the program computes your taxes due/refund AS IF THE IRS HAD GRANTED A REQUEST TO WAIVE ALL OF THE SHORTFALL PENALTY.  Moreover, despite the re-computation of tax due/refund, THAT FORM will not be saved. The program puts you into a DOOM LOOP (fill in the form, continue, hit Submit, go to the form, fill in the form, continue, hit Submit . . . ).  The only alternative at that point is to file a Paper Return.  This means, you can file electronically ONLY if you do not fill in the box that asks how much of the shortfall you corrected. I was on the phone with the Turbo Tax help team for hours and none of the three that I talked to told me that I could file electronically IF I WAS WILLING TO CORRECT THE SHORTFALL without asking the IRS to waive the entire amount. Hope this helps.

[user17717068100]

This won't directly answer your question but it should tell you enough for you to understand what's going on: Once you get into the Form 5329, if you click on the YES box under "Corrected?", the program will computer your tax liability so that you only have to pay 10% of the RMD shortfall. There is no way to use Turbo Tax to ask the IRS to waive the entire shortfall penalty EVEN THOUGH the program has boxes and worksheets that appear to support such a request. CAUTION: There is a worksheet visible below where you check YES / Corrected?, which asks for the amount that you corrected. Since I have corrected the entire shortfall, I typed that number in the box. The program immediately computed my refund to the amount due AS IF THE IRS HAD AGREED TO WAIVE THE ENTIRE PENALTY.  I then filled-in my explanation in the EXPLANATION pop-up, closed the form and moved on. HOWEVER, after going all the way to the end, at the point where I could push the "Submit" button, when I pushed the "Submit" button, the program said, "Not so fast, dummy!" (or something like that). It then took me to bac to the Worksheet where I had typed in my Explanation of the corrected amount. The form was blank, as if I had not typed anything in. I re-entered my Explanation. I closed the form and the program me into a DOOM LOOP (fill in the form, continue, hit Submit, go to the form, fill in the form, continue, hit Submit . . . ).  The only alternative at that point is to file a Paper Return.  This means, you can file electronically ONLY if you do not fill in the box that asks how much of the shortfall you corrected. This means that you correct the shortfall but still pay a 10% penalty. My shortfall was not my fault so I wanted a full waiver. I was on the phone with the Turbo Tax help team for hours. All three tried valiantly to get the program to save the Explanation worksheet. None of the three agents that I talked to told me that I could file electronically IF I WAS WILLING TO CORRECT THE SHORTFALL without asking the IRS to waive the entire amount. I ended up checking the NO box under "Corrected?" and was able to file electronically. However, my refund is less by 25% of the amount of my RMD shortfall, despite my having corrected that shortfall. Hope this helps.

[sudline]

None of these answers are helping me. I have spent 3 hours trying everything shown here to get a 5329 generated on the web version.  I have a missed RMD. Give me a short and easy way to get it to generate the form.  Going through the 1099-R route doesn't work and it never prompted any questions about a missed RMD to generate the form.

[cmmg75]

From my understanding, you are going to have to use a desktop version and not the web online version. Once I switched to the desktop version, I was able to go into form view and search for the form and fill it out. I was also finally able to do the waiver statement as well. I did a print preview before e-filing and it looks like they sent both the 5329 and the waiver statement.

[sudline]

Great, so I download the software and it tells me it's not compatible with windows 10. I need to get windows 11. Now what...I just need one form to end this nightmare of a missed RMD. Is there any other way to get it to generate?

[cmmg75]

I'm sorry. I know this is frustrating. I do not work for TurboTax and I am not a tax professional so I'm afraid I can't help you with this issue.  However, a question you could ask a tax professional would be can you e-file your taxes without it and then go to the government's website, download the form, fill it out, and then physically mail the form and your waiver statement after your e-file has been accepted. That was my backup plan in case they couldn't fix the waiver statement issue which thankfully was corrected in one of the more recent updates. 

[CatinaT1]

Yes, Form 5329 can be filed as a standalone form. If you look at the very bottom of Form 5329, you will actually see a dedicated signature and date line labeled: "Sign Here Only if You Are Filing This Form by Itself and Not With Your Tax Return."

If you are correcting an issue and asking the IRS to waive a penalty (such as a missed Required Minimum Distribution or a corrected excess contribution), you can mail the form by itself along with your written explanation statement. 

• You must use the Form 5329 for the specific tax year you are correcting (e.g., use a 2024 Form 5329 for a 2024 mistake), not the current year's form.
• The IRS will reject it if you forget to sign at the bottom.
• Make sure your current address and Social Security Number are filled out clearly at the top.