On form 5329 how do i fill in missed 2023 rmd which i paid in 2024 in my turbo tax premier?

[BillM223]

Let me understand. Did you miss this RMD in 2023? If so, how did you pay it in 2024?

According to the IRS, you can't pay an RMD in a subsequent year's tax return. Instead, you have to file the 5329 by itself. Please read the following...

From the Instructions for form 5329

If you don’t have to file a 2023 income tax return, complete and file Form 5329 by itself at the time and place you would be required to file Form 1040, 1040-SR, or 1040-NR. If you file Form 5329 by itself, then it can’t be filed electronically. Be sure to include your address on page 1 of the form and your signature and the date on page 2 of the form. Enclose, but don’t attach, a check or money order payable to “United States Treasury” for any taxes due. Write your social security number and “2023 Form 5329” on the check. For information on other payment options, including credit or debit card payments, see the Instructions for Form 1040 or the Instructions for Form 1040-NR, or go to IRS.gov. 

Prior tax years. If you are filing Form 5329 for a prior year, you must use the prior year's version of the form. If you don’t have any other changes and haven’t previously filed a federal income tax return for the prior year, file the prior year's version of Form 5329 by itself (discussed earlier). 

Note the 5329 (for various years) can be found at IRS.GOV.

[grimeyspaw]

My last message was a little confusing.....

To clear it up  bit...

I missed my 2023 RMD as I thought it was on 'automatic' with Vanguard starting in 2023.

As I started my 2023 taxes in my TurboTax Premier on  1/29 I saw the 2023 RMD  was NOT paid by Vanguard in 2023.

I called Vanguard on 1/29 and they withdrew my 2023 RMD and also my 2024 RMD with a 10% federal tax on both on 1/29.   I have confirmation of the payments from Vanguard of payment and taxes paid.

I downloaded Form 5329 form  2023 but don't understand the amounts to fill in lines 52-55, and are they the only required lines to deal with?

Do I attach a waiver request with excuse for late RMD payment.

I see TurboTax  Form 5329 has a Waiver of Tax Smart Worksheet where I can l  add a 'waiver explanation request'.

Do I now have to mail-in my federal taxes with the 5329?

 or can it be e-filed.

I also have the AZ state tax to complete.  Would it be 'dealt' with by Turbo-Tax?

Does my Premier version 'deal' with this for an on-line e-file?

I also wonder how my AZ state tax process is affected by my mistake with the late RMD.

I am confused if my returns need to be mailed in because of Form 5329.

Thank you much for your patience.

[DaveF1006]

It depends.  First of all, do anything on the forms themselves.  Report this in the interview section of your program so you can insure accuracy in your return so that yo are able to efile. Too many mistakes are made when you report everything on the forms and you do not need this aggravation. You will report the 2023 RMD distribution as you received it in 2023.

1. Go to federal>wages and income>retirement plans and social security>IRA/401K/pension plans....  
2. Record your 1099R information. If you did not receive a 1099R, then you will need to create a mock 1099R complete with the payer's address, EIN, amount of the distribution, type of distribution etc. You may wish to consult with Vanguard to find out specific information such as EIN, address, and distribution codes. 
3. Once you report your 1099R information, there will be a series of questions, one asking you about your RMD distribution. here is where you would report that the entire income amount is a RMD distribution.
4. if properly filed and reported, this will flow to your Arizona return.
5. Keep in mind, this 1099R is used because you need to report the income from the RMD so you won't be penalized this year because the penalty could be substantial so creating this 1099R is critical.

In 2024, you should receive two 1099R's. One for the 2023 RMD and one for 2024.  The one for 2023 should be coded in a way that will exclude it from taxation since you already reported this on your 2023 return.

For this year, if you report this exactly the way I have outlined, you will be able to efile your return. 

@grimeyspaw 

[grimeyspaw]

I have previously submitted a request for for assistance re:late RMD filing previously

I am confused in my TurboTax Premier of my late 2023RMD.

I failed to submit my 2023 RMD payment on time in 2023.

I 'discovered' my error on 1/29/2024 when I began my TT premier filing.

I contacted Vanguard and instructed them to withdraw and submit both my required 2023 and 2024 RMD

amounts which they did on 1/29/24.  They also withheld 10% Federal Withholding Tax on both RMD's.

I realize I need to complete Form 5329 Part IX lines 52-55 in my TurboTax questioning.

As I have paid my 2023 RMD with the 10% Fed Withholding, although late,  I will request the Waiver of  Tax... I I will include my late payment made on 1/29/2024.

I am confused on what info do I include in Part IX in lines 52-55 when completing 5329.

Also, will TurboTax flow my data from the Federal into my Arizona state return.

Thank you in advance....

[DaveF1006]

If you received the RMD before April 1, 2024,  you have satisfied your RMD requirement for year 2023 according to this IRS source. You would not report anything in Boxes 52-55 because you received your payments.

[xxzhu]

I missed taking my 2023 RMD.  Now I am doing my 2023 tax. I already filled out the 5329 form and asked for a waiver for the penalty with reasons. The problem is that I did not receive a 1099-R form for RMD, I cannot find a place to enter my RMD amount anywhere in the Retirement Plans and Social Security section on TurboTax Deluxe. Please advise. Thank you!

[grimeyspaw]

xxzhu,

I use the Premier version of TurboTax.  I do not know what the Deluxe version capabilities 'are'.

My 1099R data IS in my Premier tax filing.

Many a year ago I had to upgrade to Premier from Deluxe.

In my 5329 form, I included that I had Vanguard withdraw both my missed 2023 RMD amount AND my 2024 RMD amount with a 10% withholding on both prior to my e-filing my 2023 Taxes.

I believe you may have included your 1099R  'question' in your 5329 Form.

The IRS is understanding when you are dealing in good faith.

All the best,

Grimeyspaw

[xxzhu]

Hi Grimeyspaw,

Thank you very much for your help!

I filled out form 5329. Besides this, I think I need also to enter my missed RMD amount on my tax return to report this income. Should I? If I should, where can I enter the RMD amount on TurboTax since I don't have a 1099-R for this? Please let me know. Thank you!

xxzh

[DanaB27]

No, if you didn't take the RMD in 2023 but took it in 2024 then you do not enter a Form 1099-R on your 2023 return. You will report it on your 2024 return when you get the 2024 Form 1099-R. You still need to withdraw your RMD for 2024. Therefore, you will have two RMDs on your 2024 return.

@xxzhu 

[gsu13]

I am in a similar situation I think as I help my parents (80+ years old so not their first RMD) file their 2024 taxes.  In 2023, they forgot to take their RMD.  In Feb 2024 as they did their 2023 taxes, they withdrew their 2023 RMDs, but then also made up a 1099R for the RMD as well as filled out a 5329 for their 2023 taxes.   Around Nov/Dec 2024, they then took out their 2024 RMD.   But Wells Fargo only gave them one 1099R which totals both together and it all looks like a 2024 withdrawal

So I think I have to file an amended 2023 return to remove the "fake" 2023 1099R - does that sound right?   And Wells Fargo is saying they will not send a corrected or properly coded 2024 1099R and that we should just attach the 5329 as explanation

[DanaB27]

Yes, if they didn't take the RMD in 2023 then you need to amend the 2023 return to remove the "fake" 1099-R.

The 2023 and 2024 RMD is reported on the 2024 tax return. You will enter the 2024 Form 1099-R to report this distribution.

@gsu13