Both spouses had IRA RMD's. Wife RMD under withheld. no remedy for wife shows. Thomas is offered a remedy but Cynthia not offered remedy. How get to Cynthia RMD remedy.

Forum|Forum|7 years ago
June 6, 2019
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Best answer by dmertz

It's nearly impossible to get online TurboTax to prepare a Form 1099-R for Cynthia under these circumstances. You should manually prepare Cynthia's Form 5329 and explanation requesting the waiver, then include these with your paper tax return filed by mail.

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

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

If you want to try getting TurboTax to prepare this Form 5329 and explanation for Cynthia, you'll need to temporarily change Cynthia's birthdate in TurboTax to make her age more than 70½ in 2018, prepare the form and explanation, change Cynthia's birthdate back to actual, then never subsequently click the Continue button on the Your 1099-R Entries page, otherwise TurboTax will delete Cynthia's Form 5329 and explanation.

This has been an issue with TurboTax for years that the developers have declined to address.

tomcin01Author

Level 2

After both forms filled software asks additional questions. Thomas offered RMD met but Cindy not offered RMD shortfall question or remedy leading to form 5329?

tomcin01Author

Level 2

After 1099R forms filled turbo tax ask additional questions. Thomas offered RMD met question but Cynthia not offered RMD met question or lead to remedy Form 5329.

tomcin01Author

Level 2

Maybe this feature not available Free addition?

tomcin01Author

Level 2

Interview question: Thomas did not receive all the RMD for 2018. Interview never asks about Cindy Shortfall (beneficiary account) if her IRA received all the RMD 2018.? Cindy needs access to remedy and access to Form 5329 but can't get there.

dmertz

Level 15

Did Cynthia receive any Forms 1099-R? If so, when entering them make sure that you've indicated to TurboTax that they are Cynthia's, not yours.

If Cynthia did not receive any Form 1099-R, it's difficult to get TurboTax to prepare a Form 5329 for her.

tomcin01Author

Level 2

Married file Joint. Can I put Cynthia's Shortfall information under Thomas name which appears OK when click Short fall RMD question for Thomas? Will this cause IRS confusion. There is $1000 tax penalty at stake. I want this waiver to work OK. IRS view married joint status as single tax entity?

dmertz

Level 15

No, you cannot put Cynthia's shortfall under Thomas' name. Forms 5329 are individual tax forms, not joint tax forms, so putting it on Thomas' Form 5329 will not give to Cynthia the waiver.

If you cannot get TurboTax to prepare a Form 5329 requesting a waiver for Cynthia because Cynthia received no Forms 1099-R, simplest would be to prepare one manually and include it with your paper tax return filed by mail.